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F29UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF PUERTO RICO

In re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO,

as representative of

THE COMMONWEALTH OF PUERTO RICO et 

al.,

Debtors.1

PROMESA

Title III

No. 17 BK 3283-LTS

(Jointly Administered)

In re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO,

as representative of

PUERTO RICO ELECTRIC POWER

AUTHORITY,

Debtors.

PROMESA

Title III

No. 17 BK 4780-LTS

MEDIATION TEAM’S FOURTH NOTICE AND REPORT

To the Honorable United States District Judge Laura Taylor Swain:

 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 (“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).

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PLEASE TAKE NOTICE that, on April 8, 2022, the Court entered an order (the 

“Appointment Order”)2 appointing a Mediation Team comprising the Honorable Shelley C. 

Chapman as lead mediator, the Honorable Robert D. Drain, and the Honorable Brendan L. 

Shannon (collectively, the “Mediation Team”) to facilitate confidential negotiations among the 

Mediation Parties (and any other Mediation Party added in the Mediation Team’s discretion) 

regarding the Mediation Topics (the “Mediation”). On the same date, the Court entered its 

Order Establishing the Terms and Conditions of Mediation (the “Terms and Conditions 

Order”).

PLEASE TAKE FURTHER NOTICE that, on December 30, 2022, the Court entered its 

Notice and Order Regarding Mediation Team stating that, due to the retirement of the 

Honorable Robert D. Drain from judicial service on December 31, 2022, “effective December 

31, 2022, and until further notice (including, without limitation, notice of reappointment of 

Judge Drain to the Mediation Team in a private capacity), the Mediation Team will consist of 

Hon. Shelley C. Chapman (ret.) and Hon. Brendan Linehan Shannon.”3

 

PLEASE TAKE FURTHER NOTICE that the termination date of the Mediation (the 

“Termination Date”) has been extended by the Court multiple times. Pursuant to the Court’s 

Order Extending Mediation Termination Date, dated January 26, 2023 (the “Extension 

Order”),4 the Court established a revised Termination Date of April 28, 2023 and further stated 

that “[t]he Termination Date may be further extended only upon this Court’s approval after 

notice of such additional proposed extension to parties in interest; provided, however, that the 

 2 Capitalized terms not otherwise defined herein have the meaning ascribed to them in the Appointment 

Order.

3 Case No. 17-3283, Docket No. 23187; Case No. 17-4780, Docket No. 3137. Hereinafter, the term 

“Mediation Team” shall refer to the Hon. Shelley C. Chapman (ret.) and the Hon. Brendan Linehan Shannon. 4 Case No. 17-3283, Docket No. 23397; Case No. 17-4780, Docket No. 3167.

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Termination Date may be extended by the Mediation Team for purposes of its involvement in 

any secondary or drafting items.”5

PLEASE TAKE FURTHER NOTICE that, on March 3, 2023, the Court approved the 

Disclosure Statement for the Modified Second Amended Title III Plan of Adjustment of the 

Puerto Rico Electric Power Authority, dated March 1, 2023, and scheduled the hearing to 

consider confirmation of the Modified Second Amended Title III Plan of Adjustment of the 

Puerto Rico Electric Power Authority, dated March 1, 2023 (the “Plan”), for July 17–21, 24, 

26–28, 2023.

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PLEASE TAKE FURTHER NOTICE that, on March 22, 2023, the Court entered the 

Opinion and Order Granting in Part and Denying in Part the Financial Oversight and 

Management Board for Puerto Rico’s Motion for Summary Judgment and the Defendant’s and 

Intervenor-defendants’ Cross-motion for Summary Judgment (the “Lien Challenge Order”),7

among other things, directing certain parties to commence working with the Mediation Team to 

consensually resolve outstanding disputes regarding the Plan.

STATEMENT OF MEDIATION TEAM

1. The Mediation Team respectfully submits this Fourth Notice and Report as a 

status report in accordance with paragraph 5 of the Amended Terms and Conditions Order.

2. While there are no active negotiations involving the Mediation Team taking 

place at this time, given the Court’s direction in the Lien Challenge Order, the Mediation Team 

believes it is in the best interests of all stakeholders for the Mediation Team to remain available 

 5 Extension Order, ¶ 3. 6 Case No. 17-3283, Docket No. 23675; Case No. 17-4780, Docket No. 3304. 7 Adv. Pro. No. 19-00391, Docket No. 147.

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to assist the Mediation Parties. Accordingly, the Mediation Team requests that this Court 

extend the Termination Date by three months, to and including July 28, 2023.

3. The Mediation Team is of course available to answer any questions the Court 

may have. 

Dated: April 17, 2023 /s/ Shelley C. Chapman

SHELLEY C. CHAPMAN

Willkie Farr & Gallagher LLP

/s/ Brendan L. Shannon

BRENDAN L. SHANNON

United States Bankruptcy Judge

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