220119 ORD TERMINATING MEDIATION TEAM APPT.DOCX VERSION JANUARY 19, 2022 1

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF PUERTO RICO

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In re: PROMESA

Title III

THE FINANCIAL OVERSIGHT AND

MANAGEMENT BOARD FOR PUERTO RICO,

Case No. 17 BK 3283-LTS

as representative of

THE COMMONWEALTH OF PUERTO RICO, et al., (Jointly Administered)

Debtors.1

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ORDER TERMINATING APPOINTMENT OF MEDIATION TEAM

The Court has reviewed the Final Report of the Mediation Team (Docket Entry 

No. 19809,

2 the “Final Report”) and carefully considered the request for dissolution of the 

Mediation Team. 

The Mediation Team was appointed on June 23, 2017, to facilitate confidential 

settlement negotiations of matters and proceedings arising in these Title III cases (Docket Entry 

Nos. 329, 430) with the goal of achieving consensual resolutions and debt restructures. Since 

1 The Debtors in these Title III cases, along with each Debtor’s respective Title III case 

number and the last four (4) digits of each Debtor’s federal tax identification number, as 

applicable, are the (i) Commonwealth of Puerto Rico (the “Commonwealth”) 

(Bankruptcy Case No. 17 BK 3283-LTS) (Last Four Digits of Federal Tax ID: 3481); (ii) 

Puerto Rico Sales Tax Financing Corporation (“COFINA”) (Bankruptcy Case No. 17 BK 

3284-LTS) (Last Four Digits of Federal Tax ID: 8474); (iii) Puerto Rico Highways and 

Transportation Authority (“HTA”) (Bankruptcy Case No. 17 BK 3567-LTS) (Last Four 

Digits of Federal Tax ID: 3808); (iv) Employees Retirement System of the Government 

of the Commonwealth of Puerto Rico (“ERS”) (Bankruptcy Case No. 17 BK 3566- LTS) 

(Last Four Digits of Federal Tax ID: 9686); (v) Puerto Rico Electric Power Authority 

(“PREPA”) (Bankruptcy Case No. 17 BK 4780-LTS) (Last Four Digits of Federal Tax 

ID: 3747); and (vi) Puerto Rico Public Buildings Authority (“PBA”) (Bankruptcy Case 

No. 19 BK 5523-LTS) (Last Four Digits of Federal Tax ID: 3801) (Title III case 

numbers are listed as Bankruptcy Case numbers due to software limitations).

2 All docket entry references are to Case No. 17-3283 unless otherwise indicated.

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then, the Mediation Team has worked, on a confidential basis, with the parties who chose to 

participate in the mediation process to resolve numerous complex disputes. This work has 

resulted in mediated agreements regarding debt restructuring terms for five of the six Title III 

debtors3 and substantially consensual Title VI qualifying modifications for two other non-debtor 

entities.4

Based on the results outlined above and in the Final Report, the Court agrees that 

the Mediation Team has completed its work and accomplished fully the assigned tasks. 

Accordingly, the Court hereby terminates the appointment of the Mediation Team, including 

each of its members, with immediate effect. Notwithstanding the termination of the Mediation 

Team’s appointment, the parties who participated in the confidential mediation process led by 

the Mediation Team remain bound by confidentiality pursuant to the terms of the Mediation 

Agreement and this Court’s prior Orders. The work of the financial professionals retained by the 

Mediation Team is concluded and those professionals shall file their final fee application as 

promptly as possible consistent with other Orders of this Court. 

The Court thanks each judge who has served on the Mediation Team and the 

Team’s leader, the Honorable Barbara J. Houser, for undertaking the unprecedented 

responsibility of facilitating and guiding the negotiations of the parties to these extraordinary 

3 With regard to the sixth debtor, PREPA, the Financial Oversight and Management Board 

for Puerto Rico (the “Oversight Board”) and a substantial number of PREPA’s creditors 

have also executed a restructuring support agreement for PREPA outside the mediation 

process. The Oversight Board has indicated it anticipates filing a plan of adjustment for 

PREPA by the end of March 2022. (See Status Report of Financial Oversight and 

Management Board in Connection with December 15-16, 2021 Omnibus Hearing, 

Docket Entry No. 19514 ¶ 8.)

4 See Qualifying Modification Pursuant to PROMESA Title VI for the Puerto Rico 

Infrastructure Financing Authority (Docket Entry No. 1 Ex. A in Case No. 21-1492) and 

Qualifying Modification Pursuant to PROMESA Title VI for the Puerto Rico Convention 

Center District Authority (Docket Entry No. 1 Ex A in Case No. 21-1493).

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cases to substantially consensual conclusions. While the negotiations and communications 

among the Mediation Team and the parties were, by nature and necessity, confidential and will 

remain so, the Court was able to observe the progress of the Mediation Team’s work through its 

impact on the progress of the cases and is confident that the work of the Mediation Team was 

essential to the development and support of the plan of adjustment for the Commonwealth of 

Puerto Rico, the Employees Retirement System of the Government of the Commonwealth of 

Puerto Rico, and the Puerto Rico Public Buildings Authority that the Court confirmed on January 

18, 2022 (Docket Entry No. 19813), and the proposed qualifying modifications for the Puerto 

Rico Infrastructure Financing Authority and the Puerto Rico Convention Center District 

Authority that are before the Court for approval. The Court is sincerely and deeply grateful to 

Judge Houser and the Mediation Team for answering the call and their tireless, skillful work 

throughout the progress of these uniquely complex cases.

The Court looks forward to the Oversight Board’s fulfillment of its representation 

that it will file further proposed plans promptly, and to conclusions of these cases that will enable 

Puerto Rico to continue to progress into a bright future of economic stability, opportunity and 

growth.

SO ORDERED.

Dated: January 19, 2022 /s/ Laura Taylor Swain

Laura Taylor Swain

United States District Judge

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