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UNITED 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)

Re: ECF Nos. 22899, 22936

NOTICE OF FILING OF REVISED PROPOSED ORDER AUTHORIZING 

AMENDMENT TO THE ALTERNATIVE DISPUTE RESOLUTION PROCEDURES

 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 (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-5233-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 November 22, 2022, the Financial Oversight and 

Management Board for Puerto Rico (the “Oversight Board”), as the sole Title III representative of 

the Commonwealth of Puerto Rico (the “Commonwealth”), the Puerto Rico Highways and 

Transportation Authority (“HTA”), the Employees Retirement System of the Government of the 

Commonwealth of Puerto Rico (“ERS”), the Puerto Rico Electric Power Authority (“PREPA”), 

and the Puerto Rico Public Buildings Authority (“PBA,” and together with the Commonwealth, 

HTA, ERS, and PREPA, the “Debtors”) pursuant to Section 315(b) of the Puerto Rico Oversight, 

Management, and Economic Stability Act (“PROMESA”), 2 filed the Motion of the Financial 

Oversight and Management Board for Puerto Rico to Amend Alternative Dispute Resolution 

Procedures [ECF No. 22899] (the “Motion”).3

PLEASE TAKE FURTHER NOTICE that, on December 1, 2022, the Court entered the 

Order Setting Deadline for the Submission of Supplemental Documentation in Connection with 

the Financial Oversight and Management Board for Puerto Rico’s Motion to Amend Alternative 

Dispute Resolution Procedures [ECF No. 22951] (the “December 1 Order”), in which it directed 

the Oversight Board to file: “(i) a redlined version of the ADR Procedures Order with the proposed 

amendments, and (ii) a proposed form of notice to be served on claimants whose claims are 

transferred into ADR pursuant to the proposed amended ADR Procedures Order.” Id. at 1-2.

PLEASE TAKE FURTHER NOTICE that, in accordance with the December 1 Order, 

the Oversight Board filed the Notice of Filing of (A) Revised Proposed Order Granting Motion of 

 

2 PROMESA is codified at 48 U.S.C. §§ 2101–2241.

3 Citing “wrong event,” the Clerk of the Court directed the Debtors to re-file the Motion. In accordance with the 

Clerk’s instructions, the Motion was re-filed without any modifications or alterations on November 29, 2022 at ECF 

No. 22936.

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the Financial Oversight and Management Board for Puerto Rico to Amend Alternative Dispute 

Resolution Procedures and (B) Supplemental Documentation [ECF No. 23009] on December 7,

2022.

PLEASE TAKE FURTHER NOTICE that, on December 8, 2022, the Court entered the 

Order Setting Deadline for the Submission of Further Documentation and Supplemental Briefing 

in Connection with the Financial Oversight and Management Board for Puerto Rico’s Motion to 

Amend Alternative Dispute Resolution Procedures [ECF No. 23031] (the “December 8 Order”) in 

which the Court directed the Oversight Board to “submit a corrected redlined version of the ADR 

Procedures Order that reflects all proposed amendments . . . [and] file a supplemental brief . . . 

addressing (i) the reason for proposing to proceed to an evaluative mediation process with respect 

to claimants who have been entirely nonresponsive rather than seeking permission to remove such 

claims from the ADR process prior to evaluative mediation, and (ii) whether the Oversight Board 

intends to utilize the proposed ADR Procedures for administrative expense claims asserted against 

all Title III debtors and, if so, whether the definition of ‘administrative expense claim’ should be 

incorporated in the proposed order rather than supplied by reference to provisions of specific 

plan(s).” Id. at 1-2.

PLEASE TAKE FURTHER NOTICE that, in compliance with the December 8 Order, 

the Oversight Board filed the Notice of Filing of (A) Further Documentation and (B) Supplemental 

Briefing in Connection with the Financial Oversight and Management Board for Puerto Rico’s

Motion to Amend Alternative Dispute Resolution Procedures [ECF No. 23040].

PLEASE TAKE FURTHER NOTICE that, on December 14, 2022, the Court entered 

the Order Requiring Modification of the Debtors’ Revised Proposed Order Authorizing 

Amendment to the Alternative Dispute Resolution Procedures [ECF No. 23072] (the “December 

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14 Order”), in which it directed the Oversight Board to make revisions, as set forth therein, to the 

proposed Order Granting Motion of the Financial Oversight and Management Board for Puerto 

Rico to Amend Alternative Dispute Resolution Procedures (the “Proposed Order”) and the 

Amended Alternative Dispute Resolution Procedures (the “Amended ADR Procedures”). 

December 14 Order at 1 (“For the reasons stated on the record at the December 14, 2022 omnibus 

hearing, the Financial Management and Oversight Board for Puerto Rico is directed to make the 

following revisions to the proposed Order Granting Motion of the Financial Oversight and 

Management Board for Puerto Rico to Amend Alternative Dispute Resolution Procedures ... and 

the proposed Amended Alternative Dispute Resolution Procedures, provided as Exhibit 1 to the 

Proposed Order.”).

PLEASE TAKE FURTHER NOTICE that, in the December 14 Order, the Court also 

instructed the Oversight Board to submit “(i) a revised Form of Notice, and (ii) a redlined version 

of the Order (A) Authorizing Alternative Dispute Resolution Procedures, (B) Approving Additional 

Forms of Notice, and (C) Granting Related Relief.” Id.

PLEASE TAKE FURTHER NOTICE that, the Oversight Board believes it may be best 

to supplement the Court’s revisions to address claims where (a) the Designated Claimant is deemed 

to have rejected an Offer or Further Offer by failing to timely respond to an Offer or Further Offer, 

but the Debtors are unable to contact the Designated Claimant to obtain their consent to proceed 

to Evaluative Mediation; or (b) the Designated Claimant declines to consent to proceed to 

Evaluative Mediation. The Oversight Board proposes to add a sentence at the conclusion of 

paragraph 2(f) of the Amended ADR Procedures clarifying that such claims shall be treated as 

Unresolved Claims, as defined in the Amended ADR Procedures. 

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PLEASE TAKE FURTHER NOTICE that, pursuant to the December 14 Order, the 

Oversight Board hereby submits: (i) a clean version of the Proposed Order, attached hereto as 

Exhibit A, containing the revisions set forth in the December 14 Order, together with the Oversight 

Board’s additional clarification of paragraph 2(f); (ii) a clean version of the Amended ADR 

Procedures, attached as Exhibit 1 to the Proposed Order, incorporating the revisions set forth in 

the December 14 Order and the Oversight Board’s additional clarification; and (ii) clean versions 

of the revised Forms of Notice, attached as Exhibit 2 to the Propsed Order, incorporating the 

revisions set forth in the December 14 Order.

PLEASE TAKE FURTHER NOTICE that, pursuant to the December 14 Order, the 

Oversight Board also hereby submits a redline version of the Order (A) Authorizing Alternative 

Dispute Resolution Procedures, (B) Approving Additional Forms of Notice, and (C) Granting 

Related Relief, attached hereto as Exhibit B, reflecting the revisions set forth in the December 14 

Order, the revisions approved by the Court at the omnibus hearing, and the Oversight Board’s 

additional clarification.

PLEASE TAKE FURTHER NOTICE that all documents filed in these Title III Cases

are available (a) free of charge by visiting https://cases.ra.kroll.com/puertorico or by calling +1 

(844) 822-9231, and (b) on the Court’s website at http://www.prd.uscourts.gov, subject to the 

procedures and fees set forth therein.

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Dated: December 16, 2022

San Juan, Puerto Rico

Respectfully submitted,

/s/ Brian S. Rosen

Martin J. Bienenstock

Brian S. Rosen

Laura Stafford

(Admitted Pro Hac Vice)

PROSKAUER ROSE LLP

Eleven Times Square

New York, NY 10036

Tel: (212) 969-3000

Fax: (212) 969-2900

Attorneys for the Financial Oversight and 

Management Board for Puerto Rico as 

representative for the Debtors

/s/ Hermann D. Bauer

Hermann D. Bauer

USDC No. 215205

O’NEILL & BORGES LLC

250 Muñoz Rivera Ave., Suite 800

San Juan, PR 00918-1813

Tel: (787) 764-8181

Fax: (787) 753-8944

Co-Attorneys for the Financial Oversight and 

Management Board for Puerto Rico as 

representative for the Debtors

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EXHIBIT A

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UNITED 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)

Re: ECF Nos. 22899, 22936

ORDER GRANTING MOTION OF THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO TO AMEND 

ALTERNATIVE DISPUTE RESOLUTION PROCEDURES

 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 (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-5233-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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Upon the Motion of the Financial Oversight and Management Board for Puerto Rico to 

Amend Alternative Dispute Resolution Procedures, dated November 22, 2022 [ECF No. 22899] 

(the “Motion”),2 of the Debtors for entry of an order (this “Order”) authorizing amendment of the 

alternative dispute resolution procedures, and granting related relief as more fully described in the 

Motion; and this Court having jurisdiction over this matter pursuant to PROMESA section 306(a); 

and it appearing that venue is proper pursuant to PROMESA section 307(a); and the Court having 

found that the relief requested in the Debtors’ Motion is in the best interests of the Debtors, their 

creditors, and other parties in interest; and the Court having found that, based upon the relief 

requested by the Debtors’ Motion, no other or further notice is required; and the Court having 

determined that the legal and factual bases set forth in the Debtors’ Motion establish just cause for 

the relief granted herein; and any objections to the relief requested herein having been resolved as 

set forth herein, or withdrawn or overruled on the merits; and after due deliberation and sufficient 

cause appearing therefor,

IT IS HEREBY ORDERED THAT:

1. The Motion is granted to the extent set forth herein. 

2. Sections 2(c), 2(f), 3(c), 3(e), 6(c), 7(b), and 7(c) of the ADR Procedures are hereby 

amended as follows:

2. Offer Exchange Procedures

c) Within twenty-five (25) days of service of an Offer via either an Offer Letter or 

an ADR Notice, the Designated Claimant must respond to such Offer by (1) 

accepting the Offer, by execution and delivery of a stipulation provided by the 

Commonwealth or such other Debtor in connection with the Offer or (2) submitting 

a counteroffer (the “Counteroffer”); provided, however, that any Counteroffer may 

only propose an amount that, if agreed upon, will fix the amount of the creditor’s 

claim; and, provided, further, that, if the creditor fails to timely respond to the Offer 

Letter, the Offer shall be deemed rejected. If the Designated Claimant rejects, or is 

 2 All capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Motion.

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deemed to have rejected, the Offer, and the Debtor files an Offer Exchange 

Impasse Notice (as defined below) that complies with Section 2(f) below, the 

Designated Claim will advance to the next step of the ADR Procedures, as set forth 

below.

...

f) Within thirty (30) days of receipt of any Counteroffer, the Commonwealth or 

such other Debtor, as the case may be, may (1) accept such Counteroffer, by 

delivery of a stipulation evidencing agreement to the proposed amount, or (2) reject 

such Counteroffer, by delivery of notice to such Designated Claimant that such 

Counteroffer is unacceptable. The Commonwealth or such other Debtor, as the 

case may be, may also submit its own counteroffer to the creditor, and the parties

may exchange as many offers and counteroffers (each, a “Further Offer”) as they

deem appropriate prior to a determination that an impasse has been reached. The

Debtors or the Designated Claimant shall have thirty (30) days from receipt of each

such Further Offer (1) to accept such Further Offer,by delivery of a stipulation 

evidencing agreement to the proposed amount, or (2) to reject such Further Offer, 

by delivery of notice that such Further Offer is unacceptable. Failure to respond to

a Further Offer within thirty (30) days of receipt shall be deemed rejection of such 

Further Offer. The Commonwealth or such other Debtor, as the case may be, may 

also request additional information or documentation (the “Information Request”) 

from the Designated Claimant. The Designated Claimant shall provide additional 

documentation or information in response to such Information Request within

twenty-one (21) days following receipt of such Request. Within ten (10) days of 

either the Designated Claimant’s or the Debtor’s rejection of an Offer, 

Counteroffer,or Further Offer, the Debtor(s) shall file a notice of impasse (the 

“Offer Exchange Impasse Notice”) with the Title III Court. If the Designated 

Claimant is deemed to have rejected an Offer or a Further Offer by failing to 

timely respond to an Offer or Further Offer, the Offer Exchange Impasse 

Notice must include a certification that the Debtor has been in contact with the 

Designated Claimant and the Designated Claimant has consented to proceed 

to Evaluative Mediation (as defined below). If the Designated Claimant fails 

to respond to reasonable outreach from the Debtor, or if the Designated 

Claimant informs the Debtor that it does not consent to Evaluative Mediation, 

the corresponding Designated Claim will be treated as an Unresolved Claim 

(as defined below).

...

3. Evaluative Mediation

c) During the Evaluative Mediation process, the Designated Claim shall be

evaluated by the assigned Mediator. The Debtors shall provide notice to the 

Designated Claimant within a reasonable time following the assignment of a

Mediator to a Designated Claim. Upon assignment of a Mediator to a Designated

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Claim, the Debtor shall provide the Mediator, with copy to the Designated 

Claimant, with all information exchanged during the Offer Exchange process.

Within fourteen (14) days of assignment of the Mediator, each party may provide

to the Mediator a mediation statement (the “Mediation Statement”), not to exceed 

seven (7) pages double-spaced. Within twenty-eight (28) days of receipt of the 

information exchanged during the Offer Exchange process, the Mediator shall 

estimate the monetary value of the Designated Claim (the “Evaluation”). Upon

notice to the parties, the Mediator may extend the time period for completion of the 

Evaluation for a period of no more than fourteen (14) days. The Evaluation shall be

limited to a determination of the monetary value, if any, of the Designated Claim, 

and shall not raise or purport to evaluate any issues relating to the potential 

treatment or priority of the Designated Claim pursuant to a plan of adjustment. If 

the Mediator fails to issue an Evaluation within the time periods set forth in this 

paragraph, the Designated Claim shall proceed to binding arbitration, where both 

parties have consented to same, or to litigation before the Commonwealth or Title

III Courts, as the case may be. If a Designated Claimant fails to submit a 

Mediation Statement, the Mediator may solicit engagement of the Designated 

Claimant in advance of the formulation of the Evaluation. This outreach by 

the Mediator shall include notifying the Designated Claimant that failure to

respond and participate may result in the termination of the Evaluative

Mediation process without further advance notice. If the Designated Claimant 

is nonresponsive to the Mediator’s reasonable effort(s) at outreach during the 

Evaluative Mediation process, a Mediator may file a Notice of NonEngagement. The Notice of Non-Engagement shall identify the party’s failure

to engage in the Evaluative Mediation process and indicate that the Mediator

has determined that there is insufficient engagement or information to

warrant the formulation and issuance of an Evaluation. The Meditator’sfiling 

of a Notice of Non- Engagement will terminate the Evaluative Mediation and 

the corresponding Designated Claim will be treated as an Unresolved Claim

(as defined below).

...

e) At any time during Evaluative Mediation, the Mediator may request that the 

parties participate in a settlement conference. The parties must participate in any 

settlement conference called by the Mediator. Such conference may take place in

person or telephonically, in the Mediator’s sole discretion. The Evaluative 

Mediation process shall terminate upon the earlier of: (a) the Mediator’s filing of a 

notice that (i) a Notice of Non-Engagement, (ii) a notice that the parties have 

reached an impasse (a “Mediator’s Impasse Notice”), or (iii) a notice that the 

parties have reached a settlement (such notice shall specify the settlement amount, 

which shall constitute the liquidated amount of the Designated Claim and the 

Claims Register shall be updated accordingly); and (b) 75 days after the issuance 

of the Evaluation.

...

6. Commonwealth Court Litigation of Unresolved Claims

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...

c) For purposes of the ADR Procedures, the The Commonwealth’s 

courts will only resolve the amount of a creditor’s general unsecured claim 

or Administrative Expense Priority Claim.

1 Without limiting the 

foregoing, any other issue, including, without limitation, the priority or 

classification of a claim, distributions with respect thereto, and issues 

related to subordination thereof, shall not be subject to the Commonwealth 

court’s determination and shall be determined in connection with the 

provisions of an applicable plan of adjustment or as otherwise determined 

by the Title III Court.

1

As used herein, the term “Administrative Expense Priority Claim” shall mean a 

claim allowable under Bankruptcy Code sections 503(b) and 507(a)(2) as an 

administrative expense; provided, however, that it shall not include Title III 

professionals’ claims for compensation and reimbursement of fees and expenses, 

including claims for compensation and reimbursement authorized pursuant to 

PROMESA Section 316.

...

7. General Provisions Regarding ADR Procedures

...

b) The ADR Procedures will only resolve the amount of a creditor’s general 

unsecured claim or Administrative Expense Priority Claim. Without 

limiting the foregoing, any other issue, including, without limitation, the 

priority or classification of a claim, distributions with respect thereto, and 

issues related to subordination thereof, shall not be subject to the ADR 

Procedures and shall be determined in connection with the provisions of an 

applicable plan of adjustment or as otherwise determined by the Title III 

Court. 

c) To the extent a holder of a general unsecured claim or Administrative 

Expense Priority Claim has filed, sought or seeks any relief related to a 

Claim that is subject to the ADR Procedure, including, without limitation, 

relief sought in any adversary proceeding or any other applicable court of 

law (collectively, the “Actions”), and such Designated Claimant has not 

elected to liquidate their Claim through the process outlined in Section 6 

above, such Actions shall be stayed (including with respect to pending 

discovery) until the ADR Procedure with respect to such Claim has been 

completed. Within five (5) business days of entry of a final order with 

respect to the validity and amount of such Claim in the ADR Procedure, a 

motion shall be filed in the applicable forum to dismiss any corresponding 

portion of such Action, with prejudice, and to transfer any remaining portion 

of such Action, to the extent not pending or subject to the Debtors’ Title III 

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cases, to the Title III Court presiding over the Debtors’ Title III cases. To 

the extent required, the automatic stay, extant pursuant to section 362 of the 

Bankruptcy Code, applicable herein in accordance with section 301 of 

PROMESA, shall be deemed modified solely for the purpose of 

determining the validity and amount of a claim pursuant to the ADR 

Procedure. 

3. The ADR Procedures, as amended (the “Amended ADR Procedures”), are 

attached hereto as Exhibit 1.3 

4. The Debtors’ proposed form of notice to be filed and served in connection with 

the Amended ADR Procedures, attached as Exhibit 2, is approved.

5. The Debtors are authorized to take any and all actions reasonably necessary or 

appropriate to effectuate the relief granted pursuant to this Order in accordance with the Motion.

6. The Debtors’ right to seek further amendment of the Amended ADR Procedures 

is preserved.

7. This Order resolves docket entry No. ______

8. This Court retains exclusive jurisdiction with respect to all matters arising from 

or related to the implementation, interpretation, and enforcement of this Order.

SO ORDERED.

Dated: , 2022

 LAURA TAYLOR SWAIN

 United States District Judge

 3 The Amended ADR Procedures also include the edits set forth in the Court’s Order Amending Alternative Dispute 

Resolution Procedures [ECF No. 15505], dated December 29, 2020.

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EXHIBIT 1

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AMENDED ALTERNATIVE DISPUTE RESOLUTION PROCEDURES

1. Claims Subject to the Alternative Dispute Resolution Procedures.

a) Commencing one hundred (100) days following approval of these procedures by the Court, and

every forty-five (45) days thereafter, the Commonwealth, on behalf of itself and the other Debtors,

shall file with the Court and serve on the claimants identified therein (the “Designated Claimants”),

at the address listed on the claimants’ most recently filed proof of claim or amended proof of claim,

as the case may be, a notice of intent to transfer to the ADR Procedure (the “ADR Transfer

Notice”), and attaching as Exhibit A to the ADR Transfer Notice a schedule of claims that the

Debtors have identified to be eligible to participate in the ADR Procedure. The ADR Transfer

Notice shall be substantially in the form reflected in Exhibit A to the Notice Regarding Amended

Motion for Entry of an Order (A) Authorizing Alternative Dispute Resolution Procedures, (B)

Approving Additional Forms of Notice, and (C) Granting Related Relief [ECF No. 10698-1].

b) In the event that (i) the Debtors file an omnibus objection to Claims, (ii) a claimant objects to the

relief requested in such omnibus objection, and (iii) the Court or the Debtors determine that further

reconciliation of any such Claim is appropriate pursuant to the ADR Procedure, the Debtors shall

file an ADR Transfer Notice with the Court and serve the ADR Transfer Notice upon the Claimant

stating that such Claim has been removed from the omnibus objection and shall be subject to the

ADR Procedure. If the Debtors make such determination, within ten (10) days of service of a

claimant’s objection to the relief requested in the omnibus objection, and no later than seven (7)

days prior to the hearing on the omnibus objection, the Debtors shall file an ADR Transfer Notice

with the Court setting forth the Claims to which an omnibus objection has been interposed and

responded to by the holder thereof as and to which the Debtors have determined are eligible for

the ADR Procedure. In the event that the Court determines independently that further

reconciliation of any such claim(s) is appropriate pursuant to the ADR Procedures, the Court will

enter an order directing the Debtors to file an ADR Transfer Notice with the Court, specifying the

claim(s), and serve the ADR Transfer Notice upon the relevant Claimant(s).

c) The Debtors shall serve upon the Designated Claimant, at the address listed on the Designated

Claimants’ most recently filed proof of claim or amended proof of claim, as the case may be, a

notice regarding the ADR Procedure (the “ADR Notice”). The proposed form of the ADR Notice

is annexed hereto as Exhibit 2. The ADR Notice (i) may request that the Designated Claimant

verify, correct, clarify, or supplement certain information regarding their claim, and (ii) shall state

(a) whether the Debtor consentsto the adjudication of the Claim by binding arbitration, as set forth

below, and (b) the costs of arbitration, if the Designated Claim is not resolved pursuant to the Offer

Exchange Procedures (as defined below) or Evaluative Mediation (as defined below).

d) Claims asserting liabilities arising from funded indebtedness, or from the Commonwealth’s

clawback of revenues, shall not be subject to the ADR Procedure.

2. Offer Exchange Procedures

a) The initial step in the ADR Procedure shall be an exchange of settlement offers (the “Offer

Exchange”), which exchange will provide the Debtors and the Designated Claimants the

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opportunity to resolve the underlying Claims on a consensual basis, without the need for further

proceedings.

b) In the event that the ADR Notice does not include an offer from the Debtor(s) (the “Offer”) to

settle the validity and amount ofsuch Designated Claimant’s proof of claim, within sixty (60) days

of the ADR Notice being served upon the Designated Claimants, the Commonwealth or such other

Debtor, as the case may be, shall serve upon the Designated Claimant, at the address set forth on

such Designated Claimant’s proof of claim, an Offer (the “Offer Letter”). The Offer Letter or ADR 

Notice shall be accompanied by relevant documentation relied upon by the Debtor(s) in

determining the amount of the offer. For the avoidance of doubt, however, the Debtor(s) shall not

be obligated to provide with the Offer Letter or ADR Notice all documents on which it intends to

rely in reconciling a creditor’s Claim.

c) Within twenty-five (25) days of service of an Offer via either an Offer Letter or an ADR Notice, 

the Designated Claimant must respond to such Offer by (1) accepting the Offer, by execution and 

delivery of a stipulation provided by the Commonwealth or such other Debtor in connection with 

the Offer or (2) submitting a counteroffer (the “Counteroffer”); provided, however, that any 

Counteroffer may only propose an amount that, if agreed upon, will fix the amount of the creditor’s 

claim; and, provided, further, that, if the creditor fails to timely respond to the Offer Letter, the 

Offer shall be deemed rejected. If the Designated Claimant rejects, or is deemed to have rejected, 

the Offer, and the Debtor files an Offer Exchange Impasse Notice (as defined below) that complies 

with Section 2(f) below, the Designated Claim will advance to the next step of the ADR 

Procedures, as set forth below.

d) When the Designated Claimant responds to the Offer Letter, either by acceptance of the Offer or

the submission of a Counteroffer, the Designated Claimant shall be required to notify the Debtors

if (a) it consents to (and thereby opts into) or (b) does not consent to (and thereby opts out of)

binding arbitration in the event that the Claim ultimately is not resolved through the Offer

Exchange Procedures. If the Designated Claimant returns the Offer Letter without expressly

notifying the Debtors that it consents to, and seeks to opt into, binding arbitration, the Designated

Claimant shall be deemed to have opted out of binding arbitration. Any Designated Claimant that

does not consent to binding arbitration in its response to the Offer Letter may later consent, in

writing, to binding arbitration, provided that the Debtors also so consent. Consent to binding

arbitration, once given, cannot subsequently be withdrawn by either the Debtor or the Designated

Claimant.

e) The Counteroffer may not exceed the amount or improve the priority set forth in the Designated

Claimant’s most recent timely filed proof of claim or amended proof of claim (but may liquidate

any unliquidated amounts expressly referenced in a proof of claim).

f) Within thirty (30) days of receipt of any Counteroffer, the Commonwealth or such other Debtor,

as the case may be, may (1) accept such Counteroffer, by delivery of a stipulation evidencing

agreement to the proposed amount, or (2) reject such Counteroffer, by delivery of notice to such

Designated Claimant that such Counteroffer is unacceptable. The Commonwealth or such other

Debtor, as the case may be, may also submit its own counteroffer to the creditor, and the parties

may exchange as many offers and counteroffers(each, a “Further Offer”) as they deem appropriate

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prior to a determination that an impasse has been reached. The Debtors or the Designated Claimant 

shall have thirty (30) days from receipt of each such Further Offer (1) to accept such Further Offer,

by delivery of a stipulation evidencing agreement to the proposed amount, or (2) to reject such

Further Offer, by delivery of notice that such Further Offer is unacceptable. Failure to respond to

a Further Offer within thirty (30) days of receipt shall be deemed rejection of such Further Offer. 

The Commonwealth or such other Debtor, as the case may be, may also request additional

information or documentation (the “Information Request”) from the Designated Claimant. The

Designated Claimant shall provide additional documentation or information in response to such

Information Request within twenty-one (21) days following receipt of such Request. Within ten 

(10) days of either the Designated Claimant’s or the Debtor’s rejection of an Offer, Counteroffer,

or Further Offer, the Debtor(s) shall file a notice of impasse (the “Offer Exchange Impasse

Notice”) with the Title III Court. If the Designated Claimant is deemed to have rejected an Offer 

or a Further Offer by failing to timely respond to an Offer or Further Offer, the Offer Exchange 

Impasse Notice must include a certification that the Debtor has been in contact with the Designated 

Claimant and the Designated Claimant has consented to proceed to Evaluative Mediation (as 

defined below). If the Designated Claimant fails to respond to reasonable outreach from the 

Debtor, or if the Designated Claimant informs the Debtor that it does not consent to Evaluative 

Mediation, the corresponding Designated Claim will be treated as an Unresolved Claim (as defined 

below).

g) All Offers, Counteroffers, Further Offers, and other communication and information exchanged in

connection therewith shall remain confidential, be subject to Rule 408 of the Federal Rules of

Evidence, not be an admission of liability on anyone’s part, not be disclosed to any person, court

or tribunal, and not be used other than in connection with the ADR Procedure.

3. Evaluative Mediation

a) In the event that a Claim is not resolved through the Offer Exchange process, the Claim will

proceed to the next step of the ADR Procedures, an evaluation (“Evaluative Mediation”) of the

Designated Claimant’s claim by a mediator (“Mediator”) identified by the Title III Court in itssole

and absolute discretion, including a federal judge. The purpose of the Evaluative Mediation phase

of the ADR Procedures is to obtain a non-binding, confidential, monetary valuation of each

Designated Claim that may assist in achieving settlement by serving as a focal point for further

discussions between the parties.

b) During the Mediation phase, the Title III Court may design a process for assigning Mediators to

Designated Claims, including a process to identify whether any individual Mediator may be

conflicted from resolving a Designated Claim.

c) During the Evaluative Mediation process, the Designated Claim shall be evaluated by the assigned

Mediator. The Debtors shall provide notice to the Designated Claimant within a reasonable time 

following the assignment of a Mediator to a Designated Claim. Upon assignment of a Mediator to 

a Designated Claim, the Debtor shall provide the Mediator, with copy to the Designated Claimant, 

with all information exchanged during the Offer Exchange process. Within fourteen (14) days of 

assignment of the Mediator, each party may provide to the Mediator a mediation statement (the

“Mediation Statement”), not to exceed seven (7) pages double-spaced. Within twenty-eight (28)

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days of receipt of the information exchanged during the Offer Exchange process, the Mediator 

shall estimate the monetary value of the Designated Claim (the “Evaluation”). Upon notice to the

parties, the Mediator may extend the time period for completion of the Evaluation for a period of

no more than fourteen (14) days. The Evaluation shall be limited to a determination of the 

monetary value, if any, of the Designated Claim, and shall not raise or purport to evaluate any 

issues relating to the potential treatment or priority of the Designated Claim pursuant to a plan of

adjustment. If the Mediator fails to issue an Evaluation within the time periods set forth in this 

paragraph, the Designated Claim shall proceed to binding arbitration, where both parties have

consented to same, or to litigation before the Commonwealth or Title III Courts, as the case may 

be. If a Designated Claimant fails to submit a Mediation Statement, the Mediator may solicit 

engagement of the Designated Claimant in advance of the formulation of the Evaluation. This 

outreach by the Mediator shall include notifying the Designated Claimant that failure to respond 

and participate may result in the termination of the Evaluative Mediation process without further

advance notice. If the Designated Claimant is nonresponsive to the Mediator’s reasonable effort(s)

at outreach during the Evaluative Mediation process, a Mediator may file a Notice of NonEngagement. The Notice of Non-Engagement shall identify the party’s failure to engage in the 

Evaluative Mediation process and indicate that the Mediator has determined that there is 

insufficient engagement or information to warrant the formulation and issuance of an Evaluation.

The Meditator’s filing of a Notice of Non- Engagement will terminate the Evaluative Mediation 

and the corresponding Designated Claim will be treated as an Unresolved Claim (as defined 

below).

d) Within twenty-one (21) days following the issuance of the Evaluation, each of the parties shall

submit to the Mediator a written acceptance or rejection of the Evaluation. The failure to submit

a written acceptance or rejection within twenty-one (21) days shall constitute a rejection of the

Evaluation. If both parties accept the Evaluation, then the Designated Claim shall be deemed

settled and the amount set forth in the Evaluation shall constitute the liquidated amount of the

Designated Claim and the Claims Register shall be updated accordingly. If one or both parties

rejects the Evaluation, then the parties shall have an additional fourteen (14) days to negotiate a

consensual settlement of the Designated Claim. The Debtor shall notify the Mediator immediately

after the expiration of the 14-day period as to whether a consensual settlement has been reached.

e) At any time during Evaluative Mediation, the Mediator may request that the parties participate in 

a settlement conference. The parties must participate in any settlement conference called by the 

Mediator. Such conference may take place in person or telephonically, in the Mediator’s sole 

discretion. The Evaluative Mediation process shall terminate upon the earlier of: (a) the Mediator’s 

filing of (i) a Notice of Non-Engagement, (ii) a notice that the parties have reached an impasse (a 

“Mediator’s Impasse Notice”), or (iii) a notice that the parties have reached a settlement (such 

notice shall specify the settlement amount, which shall constitute the liquidated amount of the 

Designated Claim and the Claims Register shall be updated accordingly); and (b) 75 days after the 

issuance of the Evaluation..

f) In the event that a Designated Claim is not resolved through Offer Exchange or Evaluative

Mediation (an “Unresolved Claim”), such Designated Claim shall be resolved in accordance with

the process outlined in Section 4 below. Within ten (10) days of the termination of Evaluative

Mediation (as set forth in Section 3(e) above), the Debtor(s) shall serve upon the Designated

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Claimant a notice describing the opportunity to participate in binding arbitration and the

opportunity for use of Commonwealth court procedures.

4. Resolution of Unresolved Claims

a) The amount of an Unresolved Claim shall be resolved by either: (a) binding arbitration as set forth

in Section 5 below, if the Designated Claimant and the Debtor consented in writing thereto; (b)

litigation before the Commonwealth’s courts, as set forth in Section 6 below; or (c) if either party

determines that the Designated Claim should not be resolved using state court procedures, and in

the event that both parties have not consented to binding arbitration, the Designated Claim shall

be resolved in accordance with the Litigation procedures set forth in Section 8 below. Designated

Claimants may consent to binding arbitration OR to litigate before the Commonwealth’s courts,

but not both. In the event that a Designated Claimant submits an ADR Notice that indicates consent 

to binding arbitration and litigation before the Commonwealth’s courts, they will be deemed to 

have consented to litigate before the Commonwealth’s courts.

5. Binding Arbitration

a) If the Designated Claimant previously consented in writing to binding arbitration as a means to

resolve its claim(s) as set forth above (either in its response to the Offer Letter or by the terms of

a separate written agreement either before or after the Petition Date), and if the Debtors agree to

binding arbitration, and such Designated Claim is not resolved in the Offer Exchange Procedures

or in Evaluative Mediation, then the Designated Claim shall be subject to binding arbitration. If

the Designated Claimant has not expressly consented to binding arbitration in its response to the

Offer Letter and has not otherwise expressly consented to binding arbitration, or if the Debtors

have not consented to binding arbitration, at the conclusion of Evaluative Mediation, the Claim

shall be resolved in accordance with the Commonwealth court procedures described below or the

Litigation procedures described below.

b) If the Designated Claimant and the Debtors have agreed to binding arbitration, as soon as

reasonably practicable following the Evaluation Termination Date with respect to any Designated

Claim, the Debtors shall file and serve on the applicable Designated Claimant (or their counsel if

known), a notice of arbitration (an “Arbitration Notice”).

c) The Debtors shall solicit proposals from one or more arbitration services providers (the

“Provider”), with a panel of arbitrators (“Arbitrators,” and each, an “Arbitrator”), to assist in

evaluating Designated Claims. The Debtors shall consult with the Official Committee of

Unsecured Creditors prior to selecting the Provider. Prior to engaging such Provider, the Debtors

shall file an informative motion with the Court identifying the Provider(s) whose services they

have solicited. To the extent any party in interest objects to the independence or qualifications of

the Provider(s), such party must file a written notice of such objection within fourteen (14) days

of the filing of such informative motion. Within seven (7) days thereafter, the Debtors may file a

reply in support of the Provider(s) identified. The Court will then determine whether any further

action with respect to the objection(s) is required. Once a Provider of arbitration services has been

selected, that provider’s pricing proposals shall govern all binding arbitrations conducted pursuant

to the process outlined in this Section 5. During the Arbitration phase, each Designated Claim shall 

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be evaluated by a single Arbitrator from the Provider of arbitration services selected by the

Debtor(s) as described in subsection (d) below. The method by which an Arbitrator shall be

assigned to a Designated Claim shall be determined by the Provider. The Provider and the

Arbitator(s) shall ensure that, in the event an individual Arbitrator identifies a conflict in resolving

a Designated Claim that has been assigned to such Arbitrator, the Designated Claim shall be reassigned.

d) All costs for an Arbitrator’s services shall be divided evenly between the Debtor(s) and the

Designated Claimant. To ensure transparency in the costs of proceeding through binding

arbitration, the Debtors shall solicit pricing proposals from at least two (2) potential Providers of

arbitration services.

e) All arbitration hearings (each, an “Arbitration Hearing”) shall be scheduled by the Arbitrator, in

consultation with the parties. The Debtors shall provide the Designated Claimant with notice of

the date, time and place of the Arbitration Hearing. In the event that the Arbitrator assigned to

resolve a particular Claim is not located in San Juan, Puerto Rico, appropriate video-conferencing

services shall be made available, and any cost of such services will be divided evenly between the

Debtors and the Designated Claimant if not already included in the Provider’s fee.

f) Pre-Hearing. Any pre-hearing issues, matters or disputes (other than with respect to merits issues)

shall be presented to the Arbitrator telephonically (or by such other method agreed to by the

Arbitrator and the parties) for expeditious, final and binding resolution. All pre-hearing issues,

matters or disputes (other than with respect to merits issues) must be presented to the Arbitrator not 

later than twenty-one (21) days prior to the Arbitration Hearing so as to permit the Arbitrator to 

review and rule upon the requests by telephonic or email communication at least five (5) days prior

to the Arbitration Hearing.

g) Limited Discovery. Unless the parties agree otherwise, discovery shall be limited to ten (10)

requests for production of documents, electronically stored information and things, including all

discrete subparts (“Document Requests”); ten (10) requests for admission, including all discrete

subparts; and ten (10) hours of depositions. Any such Document Requests, requests for admission,

and notices of deposition shall be made in writing and shall be served by electronic mail and

overnight mail no later than by 5:00 p.m., Atlantic Time, on a weekday that is not a legal holiday,

no fewer than thirty-five (35) days before the Arbitration Hearing. Responses and objections to

Document Requests, requests for admission, and notices of deposition, if any, must be served

within seven (7) days after service ofsuch Document Requests, requests for admission, and notices

of deposition. Items requested in Document Requests must be produced within fourteen (14) days

after service of the Document Requests, unless the parties agree otherwise. Fact or expert witness

affidavits, to the extent needed, must be submitted at least fourteen (14) days prior to the scheduled

Arbitration Hearing. All documents and affidavits from discovery shall be confidential and shall

not be either (i) disclosed to any person or party not participating in the arbitration proceeding or

(ii) used for any purpose other than in connection with the arbitration proceeding, except as

provided herein. By accepting binding arbitration, the parties agree that no interrogatories shall

be posited. Notwithstanding anything to the contrary in this paragraph, the Arbitrator may modify

any provisions regarding discovery for good cause shown.

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h) Pre-Arbitration Statement. On or before fourteen (14) days prior to the scheduled Arbitration

Hearing, each party shall submit to the arbitrator and serve on the other party or parties by

electronic mail and overnight mail a pre-arbitration statement (the “Pre-Arbitration Statement”).

The Pre-Arbitration Statement shall not exceed twenty (20) pages, double spaced, exclusive of

attachments. Quotations and footnotes may be single spaced. At least one-inch margins shall be

used, and printing shall not be smaller than 12-point font.

i) Arbitration Hearing. Unless otherwise agreed by the parties and the arbitrator, the Arbitration

Hearing must be held no later than seventy-five (75) days following assignment of the Arbitrator

to the Designated Claim. Direct testimony shall be submitted in the form of affidavits. Cross

examination shall be conducted via live testimony. Each party shall have a maximum of two hours,

including any rebuttal and cross-examination, within which to present its position at the Arbitration

Hearing. The Arbitration Hearing shall be open only to the parties, their counsel and any witnesses.

Non-party witnesses shall be sequestered. No reply briefs or post-hearing briefs may be filed,

unlessthe arbitrator requests such briefs, in which case, such briefing shall be subject to the issues,

timing and page limitations the arbitrator imposes.

j) Arbitration Awards. The Arbitrator shall issue a short written opinion and award (the “Arbitration

Award”) within fifteen (15) days after the last day of the Arbitration Hearing; provided, however,

that the arbitrator may extend such period once for an additional fifteen (15) days. Any Arbitration

Award shall only determine the amount of the Claim and shall not raise or determine any issues

relating to the treatment or priority of the Designated Claim.

k) Finality of Arbitration Awards. All Arbitration Awardsshall be final and binding. Any application

to vacate must be limited to the grounds specified in 9 U.S.C. § 10(a) and must be filed with the

Title III Court within thirty (30) days of issuance of the Arbitration Award. The Federal Arbitration 

Act, which has been codified at 9 U.S.C. §§ 1-307, shall apply to such applications. Once the

Arbitration Award isissued, the Claims Registry shall be updated to reflect the liquidatedamount of

the Designated Claim, as determined by the Arbitration Award.

6. Commonwealth Court Litigation of Unresolved Claims

a) The Debtors shall indicate in the ADR Notice whether they consent to liquidate any portion of a

Claim through the Commonwealth’s courts. For the avoidance of doubt, the Debtors do not consent 

to liquidation of any claims or causes of action relating to PROMESA or other federal laws before

the Commonwealth’s courts.

b) In the event that a Designated Claimant elects to liquidate their Claim before the Commonwealth’s

courts, and the Debtors have consented to such liquidation, the Title III stay shall be modified

solely (1) to permit the continuation of those matters that have been initiated in the

Commonwealth’s courts and that the Designated Claimant has alleged in their Claim give rise to

liabilities owed by the Debtors, or (2) to permit the Designated Claimant to commence a new action

in the Commonwealth’s courts, provided, however, that any such new action shall be limitedto 

causes of action giving rise to the exact same liabilities asserted in their Claim. To the extent any 

Designated Claimant raises additional claims or causes of action beyond those giving rise to

liabilities asserted in their Claim, or raises any claims or causes of action relating to PROMESA

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or other questions of federal law, the Title III stay shall not be lifted as to such claims or causes of

action. Any statute of limitations applicable to such causes of action shall be deemed tolled as of

the date of filing of the Debtors’ Title III petitions. Claimants shall retain all existing appeal rights

to which they are entitled under Commonwealth law. The Debtors shall file an omnibus motion,

every sixty (60) days, identifying each automatic stay modification agreed to by the Debtors during

the relevant period and seeking Court approval of such modifications nunc pro tunc to the relevant

modification date (each, an “ADR Omnibus Lift Stay Motion”).

c) For purposes of the ADR Procedures, the Commonwealth’s courts will only resolve the amount of

a creditor’s general unsecured claim or Administrative Expense Priority Claim.1

 Without limiting 

the foregoing, any other issue, including, without limitation, the priority or classification of a 

claim, distributions with respect thereto, and issues related to subordination thereof, shall not be 

subject to the Commonwealth court’s determination and shall be determinedin connection with the 

provisions of an applicable plan of adjustment or as otherwise determined by the Title III Court.

d) Litigation before the Commonwealth’s courts with respect to any Unresolved Claim shall proceed

in accordance with all applicable local proceduralrules. Each party shall bear their own costs with

respect to any litigation before the Commonwealth’s courts, unless local procedural rules or

statutory fee shifting provisions dictate otherwise.

e) Nothing herein shall limit the rights of any defendant in an action brought in the Commonwealth’s

courts to remove such action pursuant to 28 U.S.C. § 1441, or of any plaintiff to contest such

removal. Any modifications of the automatic stay, as set forth in and pursuant to the limitations

described in Section 6.b, will remain in effect if an action is removed to the United States District

Court for the District of Puerto Rico. The applicable federal procedural rules shall govern any such

removed action.

f) Once a final judgment (the “Commonwealth Final Judgment”) has been reached with respect to

the amount of an Unresolved Claim litigated in the Commonwealth courts, as the term “final

judgment” is interpreted under Commonwealth law, the Claims Registry shall be updated to reflect

the liquidated amount of the Designated Claim, as determined by the Commonwealth Final

Judgment.

7. General Provisions Regarding ADR Procedures

a) In the event that a claimant elects not to participate in Arbitration or to have their Unresolved

Claim liquidated by the Commonwealth’s courts, (a) such claim, the allowance of which has been

or may be objected to by the Commonwealth, such other Title III Debtor as appropriate, or another

party in interest, shall be subject to the jurisdiction of the Title III Court and the determination

regarding, among other things, the validity and amount thereof, shall be made by the Court, (b)

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holders shall retain their rights to have their claims adjudicated by the Title III Court, including

their rights to evidentiary proceedings and to an appeal of the Title III Court’s determinations with

respect to their claims, and (c) nothing herein shall affect the right of the Creditors’ Committee,

under section 502(a) of the Bankruptcy Code, to file objections to claims and the Debtors and the

Oversight Board to oppose any such right to the extent that the Creditors’ Committee files an

objection to a claim.

b) The ADR Procedures will only resolve the amount of a creditor’s general unsecured claim or 

Administrative Expense Priority Claim. Without limiting the foregoing, any other issue, including, 

without limitation, the priority or classification of a claim, distributions with respect thereto, and 

issues related to subordination thereof, shall not be subject to the ADR Procedures and shall be 

determined in connection with the provisions of an applicable plan of adjustment or as otherwise

determined by the Title III Court.

c) To the extent a holder of a general unsecured claim or Administrative Expense Priority Claim has 

filed, sought or seeks any relief related toa Claim that is subject to the ADR Procedure, including,

without limitation, relief sought in any adversary proceeding or any other applicable court of law 

(collectively, the “Actions”), and such Designated Claimant has not elected to liquidate their Claim 

through the process outlined in Section 6 above, such Actions shall be stayed (including with 

respect to pending discovery) until the ADR Procedure with respect to such Claim has been

completed. Within five (5) business daysof entry of a final order with respect to the validity and 

amount of such Claim in the ADR Procedure, a motion shall be filed in the applicable forum to

dismiss any corresponding portion ofsuch Action, with prejudice, and to transfer any remaining 

portion of such Action, to the extent not pending or subject to the Debtors’ Title III cases, to the 

Title III Court presiding over the Debtors’ Title III cases. To the extent required, the automatic 

stay, extant pursuant to section 362of the Bankruptcy Code, applicable herein in accordance with

section 301 of PROMESA, shall bedeemed modified solely for the purpose of determining the

validity and amount of a claim pursuant to the ADR Procedure.

d) Report to Court of Status of Claims Referred to ADR Procedure. Within sixty (60) days of filing

the first ADR Notice, and every sixty (60) days thereafter, the Debtors shall file with the Court a

notice (an “ADR Status Notice”) setting forth those claims since the filing of the prior ADR Status

Notice that (a) have been resolved through the Offer Exchange or the Evaluative Mediation Process

(the “Offer Exchange Resolved Claims” and the “Evaluative Mediation Resolved Claims”); (b)

have been resolved through Arbitration (the “Arbitration Resolved Claims”); (c) have been

resolved through litigation before the Commonwealth’s courts (the “Commonwealth Court

Resolved Claims,” and together with the Offer Exchange Resolved Claims, the Evaluative

Mediation Resolved Claims, and the Arbitration Resolved Claims, the “Resolved Claims”); and

(d) are currently in the Offer Exchange process, the Evaluative Mediation process, the Arbitration

process, litigation before the Commonwealth’s courts (or the United States District Court for the

District of Puerto Rico, if the action was removed), or litigation before the Title III Court. The

ADR Status Notice shall be substantially in the format reflected in Exhibit A to the Notice

Regarding Amended Motion for Entry of an Order (A) Authorizing Alternative Dispute Resolution

Procedures, (B) Approving Additional Forms of Notice, and (C) Granting Related Relief [ECF No. 

10698-1]. For the avoidance of doubt, the ADR Status Notice shall include, for each Designated 

Claim identified, (1) a code indicating the claim amount by reference to brackets, (2) a general

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characterization of the type of claim, and (3) if the claim isrelating to a pending litigation,the forum

in which the action is pending and the case number, where applicable.

e) With respect to any Resolved Claims, the Debtors shall file with the Title III Court an informative

motion, attaching the form of Stipulation, to be so ordered by the Title III Court. The Debtors shall 

file such informative motion within two weeks of the resolution of the Claim, or in conjunction 

with the next status report, whichever is later. All Resolved Claims and Arbitration Resolved 

Claims shall be noted on the Claims Registry of the Title III Cases and distributions with respect

thereto shall be made in accordance with the provisions of theCommonwealth plan of adjustment 

or such other plan of adjustment as may be appropriate. To the extent feasible, and to assist the Title

III Court in managing its docket, the Debtorsshall providean update to the Title III Court regarding

any common legal issues shared amongst the UnresolvedClaims, to the extent such common legal

issues exist.

8. Litigation of Unresolved Claims

a) Where there has been no consent, under Section 4.a above, to binding arbitration or litigation

before the Commonwealth’s courts, within one hundred and twenty (120) days of the filing of a

Mediator’s Impasse Notice, the Commonwealth or such other Title III Debtor, as the case may be,

shall initiate litigation against the holder of the Unresolved Claim by the filing of a claim objection,

which may be either an individual or an omnibus objection. Each party shall bear their own costs

with respect to litigation of any Unresolved Claim. The Court will provide notice pursuant to 28

U.S.C. § 636 by which all parties can agree to resolve an Unresolved Claim before a United States

Magistrate Judge (the “Claims Adjudication Judges”). If all parties voluntarily so consent, a

Claims Adjudication Judge may conduct all proceedings and order the entry of a final judgment

with respect to an Unresolved Claim. Such final judgment may then be appealed directly to the

United States Court of Appeals for the First Circuit.

b) The Title III Court may also, in its discretion, refer such Unresolved Claims to Claims

Adjudication Judges for general pre-trial management and preparation of a Report and

Recommendation pursuant to 28 U.S.C. § 636(b). If a claimant has not voluntarily consented to the

resolution of their Unresolved Claim by the Claims Adjudication Judges, the Claims Adjudication 

Judge shall make a Report and Recommendation to the Title III Court. Such Report and 

Recommendation will be reviewed by the Title III Court pursuant to Federal Rule of Civil Procedure

72, and claimants will have an opportunity to object to the Report and Recommendationpursuant to 

28 U.S.C. § 636(b) and Federal Rule of Civil Procedure 72(b). Upon reviewing the Report and 

Recommendation, the Title III Court will enter a final determination, which will be subject to appeal

to the United States Court of Appeals for the First Circuit.

c) No individual who has served as a Mediator with respect to a particular Unresolved Claim may

also serve as a Claim Adjudication Judge with respect to the same Unresolved Claim.

d) Litigation before the Title III Court with respect to any Unresolved Claim shall proceed in

accordance with the Federal Rules of Bankruptcy Procedure, made applicable to this Title III Case

pursuant to PROMESA § 310, the Local Rules for the District of Puerto Rico, and this Court’s

standing and case management orders. In addition to the foregoing, litigation before Claims

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Adjudication Judges shall also proceed in accordance with 28 U.S.C. § 636 and Federal Rule of

Civil Procedure 72.

e) Any order/decision entered by the Claims Adjudication Judges shall not provide for any amounts

already disallowed by the Title III Court, specific performance or any other form of equitable

remedy or any other relief impermissible under PROMESA or such other applicable law. To the

extent a Claim requests such relief, those requests for relief will be determined by the Title III

Court. Nothing in this paragraph shall preclude the Title III Court from separately referring such

requests to Magistrate Judges pursuant to 28 U.S.C. § 636 for general pretrial management and/or

Report and Recommendation.

9. Translation and Interpretation Services

a) The Debtors shall provide certified translation and/or interpretation services in connection with

Evaluative Mediation and/or proceedings before the Title III or District Court, and Magistrate

Judges, as specified in orders of the Court, but shall not be obligated to provide such services in

connection with binding arbitration.

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EXHIBIT 2

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UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF PUERTO RICO

PROMESA

Title III

No. 17-BK-3283-LTS

(Jointly Administered)

ALTERNATIVE DISPUTE RESOLUTION NOTICE

Service Date:

Designated Claimant(s):

Address:

Designated Claim Number(s):

Amount(s) Stated in Proof(s) of Claim:

RESPONSE DEADLINE:

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”, and together with the Commonwealth, COFINA, HTA, ERS, and PREPA, the “Debtors”) (Bankruptcy

Case No. 19-BK-5532-LTS) (LastFour Digits of Federal Tax ID: 3801) (Title III case numbers are listed as 

Bankruptcy Case numbers due to software limitations).

In re:

THE FINANCIAL OVERSIGHT AND

MANAGEMENT BOARD FOR PUERTO RICO,

as representative of

THE COMMONWEALTH OF PUERTO RICO, et al.,

Debtors.1

This Notice only applies to the Designated Claim Number listed above. You should

read the Notice carefully and discuss it with your attorney. If you do not have an

attorney, you may wish to consult one.

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Why am I receiving this notice? You have filed the claim(s) referenced above

(which is referred to in this Notice as the “Designated Claim(s)”) in [Debtor]’s Title III case.

The Debtor believes that the Designated Claim(s) is invalid or overstated in whole or in part, and

is prepared to offer to agree with you to a lower stated claim amount (in other words, to “settle”

the liquidated amount of your Designated Claim(s)) instead of starting proceedings asking the

Court to reduce or eliminate your claim. This Alternative Dispute Resolution Notice includes

the Debtor’s settlement offer to you in Section I below.

Overview of the ADR Process. By this Alternative Dispute Resolution Notice (“ADR

Notice”), the [Debtor] hereby submits the Designated Claim(s) in the [Debtor’s] Title III case to

alternative dispute resolution, pursuant to the procedures (the “ADR Procedures”) set forth in 

Exhibit 1 to the Order Granting Motion to Amend Alternative Dispute Resolution Procedures, 

entered by the United States District Court for the District of Puerto Rico (the “Title III Court”) 

on [DATE]. A copy of the ADR Procedures, which describe all of the methods that may be used 

to liquidate your Designated Claim(s), is enclosed for your reference. Please review the ADR 

Procedures carefully.

A Settlement Offer is included in Section I below. You must respond to the Settlement

Offer by either accepting, rejecting, or providing a counteroffer. If you and the [Debtor] do not

reach an agreement, your claim will be sent to evaluative mediation, where further settlement

efforts will be assisted by a Mediator. See Section [ ] of the ADR Procedures. You must state

whether, if those efforts fail, you agree to proceed with your claim either through binding

arbitration, or, if you qualify, litigation in the Commonwealth courts (as described below).

See Sections [ ] of the ADR Procedures. If you do not choose either of those options, or if all

parties do not agree to your chosen option, your claim will be resolved in this Title III Court

under the procedures described in Section [ ] of the ADR Procedures.

SETTLEMENT OFFER. The [Debtor] has reviewed your Designated Claim(s) and,

pursuant to the ADR Procedures, offers the amount(s) set forth in Section I below as a [general 

unsecured nonpriority/administrative expense] claim in full and final settlement of the liquidated 

amount of your Designated Claim(s) (the “Settlement Offer”). Please note that, if your claim is a 

general unsecured claim, the amount of the Settlement Offer and any amount you may agree 

to may NOT be the amount you will actually receiveunder a confirmed plan of adjustment.

The treatment of your claim will be determined bythe plan of adjustment. It is possible 

that the amount you will be paid under the plan on account of your claim may be less than, 

and may only be a fraction of, the liquidated amount of your claim. Allowed administrative 

expense claims will be paid pursuant to the terms of any confirmed plan of adjustment.

You Must Respond to This Notice. You must return this ADR Notice to Proskauer

Rose LLP, with a copy to Alvarez & Marsal, with a Permitted Response (as defined below)

to the Settlement Offer by no later than the Response Deadline listed above.

If you have any questions, please contact Kroll at (844) 822-9231 (tollfree for U.S. 

and Puerto Rico) or (646) 486-7944 (for international callers), available 10:00

a.m. to 7:00 p.m. (Atlantic Standard Time) (Spanish available).

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In addition, if you are rejecting the Settlement Offer or making a counteroffer, to the

extent that your most recent proof(s) of claim does not (a) state the correct amount of your

Designated Claim(s); (b) expressly identify each and every cause of action and legal theory on

which you base your Designated Claim(s); (c) include current, correct and complete contact

information of your counsel or other representative; or (d) provide all documents on which you

rely in support of your Designated Claim(s), you must provide all such information and

documentation with your Permitted Response to this Notice.

If you do not return this ADR Notice with the requested information and a Permitted

Response to the Settlement Offer to Proskauer Rose, with a copy to Alvarez & Marsal, so that it

is received by the deadline to respond, you will be deemed to have rejected the Settlement Offer

and the liquidation of your Designated Claim(s) will either advance to the evaluative mediation 

phase of the ADR Procedures, as explained in Sections 2(f) and 3 of the ADR Procedures, or 

will be resolved according to the provisions for resolving Unresolved Claims set forth in Section 

4 of the ADR Procedures. 

Binding Arbitration or Commonwealth Court Litigation. If you do not accept the

Settlement Offer, you are required to state in Section II below whether you consent to binding

arbitration of your Designated Claim(s) or to having the amount of your Designated Claim

resolved by litigation in the Commonwealth Courts. You cannot consent to both. If you do not

consent to either, your claim will be resolved in this Title III Court.

The Debtor(s) [have/have not] consented to submit your Designated Claim(s) listed

above to binding arbitration. In binding arbitration, the arbitrator (rather than a court) will

decide the liquidated amount of your claim. Please note that if you elect to participate in

binding arbitration, you will be required to pay [$ ], which is 50% of the cost for the

arbitrator’s services, as well as the fees of your own lawyer (if any) and any incidental costs

that you incur.

You are required to indicate in Section II below whether you agree to binding arbitration.

Once you have consented to participate in binding arbitration, your consent to binding

arbitration cannot be withdrawn. In addition, if you have previously consented in writing,

either before or after [Debtor’s] Title III case was filed, to binding arbitration as a means to

resolve your claim(s) against [Debtor], any attempt to opt out of binding arbitration in response

to this Notice shall be ineffective.

If you do not elect to participate in binding arbitration, you may instead elect to have the

liquidated amount of your claim determined by the Commonwealth courts.

Commonwealth Court Litigation

The Debtors [have/have not] consented to have the liquidated amount of your Claim

determined by the Commonwealth courts, subject to the restrictions set forth in the ADR

Procedures. You are required to indicate in Section II below whether you agree to have your

liquidated claim amount determined by the Commonwealth courts.

Section I: Settlement Offer. [Debtor] offers you an allowed [general unsecured 

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4

nonpriority/administrative expense] claim in the amount of [$ ] against [Debtor] in full 

satisfaction of your Designated Claim(s), to be satisfied in accordance with any plan of

adjustment of debts confirmed and implemented in[Debtor’s] Title III case.

The only permitted responses (“Permitted Responses”) to the Settlement Offer are:

(a) acceptance of the Settlement Offer,

(b) rejection of the Settlement Offer, or

(c) rejection of the Settlement Offer coupled with a counteroffer (a “Counteroffer”).

Information regarding Counteroffers is available in Section [ ] of the ADR Procedures.

Please select your Permitted Response in the box below.

YOU MUST RESPOND TO THE SETTLEMENT OFFER.AND RESPOND TO THE

OTHER APPLICABLE ITEMS IN THE REMAINDER OF THE FORM

RESPONSE TO SETTLEMENT OFFER

 I/we agree to and accept the terms of the Settlement Offer.

(If you indicate that you accept the settlement offer, skip Section II, sign the form at

the bottom, and return it to Proskauer Rose LLP, with a copy to Alvarez and Marsal.

If you are not accepting the Settlement Offer, read each of the following items

carefully and respond as applicable.)

OR

 I/we reject the Settlement Offer.

OR

 I/we reject the Settlement Offer. However, I/we will accept an allowed [general 

unsecured nonpriority/administrative expense] claim against [Debtor] in the amount of

$ in full satisfaction of the Designated Claim(s), to be satisfied in accordance with

any plan of adjustment of debtsconfirmed and implemented in the [Debtor’s] Title III

case.

Section [ ] of the ADR Procedures sets forth the restrictions on counteroffers. Your

counteroffer may not include unknown, unliquidated or similar amounts and may not exceed

the amount or improve the priority set forth in your most recent timely filed or amended

proof of claim. You may not amend your proof of claim solely for the purpose of proposing

a counteroffer of a higher amount or a better priority. If you return this form with a

counteroffer that does not comply with the terms of the ADR Procedures, you will be

deemed to have rejected the Settlement Offer, and the liquidation of your Designated

Claim(s) will advance to evaluative mediation as set forth in Section [ ] of the ADR

Procedures.

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Section II: Binding Arbitration or Commonwealth Court Liquidation.

OR

In addition, if you are rejecting the Settlement Offer or making a counteroffer, to the extent

that your most recent proof(s) of claim does not (a) state the correct amount of your

Designated Claim(s); (b) expressly identify each and every cause of action and legal theory

on which you base your Designated Claim(s); (c) include current, correct and complete

contact information of your counsel or other representative; or (d) provide all documents

on which you rely in support of your Designated Claim(s), you MUST send all such

information and documentation with your Permitted Response to Proskauer Rose, with a

copy to Alvarez & Marsal.

A. CONSENT TO BINDING ARBITRATION

Please indicate below whether you consent to binding arbitration with respect to the

Designated Claim(s):

 I/we CONSENT to Binding Arbitration. I/we acknowledge that my/our consent,

once given, cannot be withdrawn.

Note that if you elect to participate in binding arbitration, you will be required to pay [$ ],

which is 50% of the cost for the arbitrator’s services, as well as the fees of your own lawyer (if

any) and any incidental costs that you incur.

OR

 I/we DO NOT CONSENT to Binding Arbitration.

Note that binding arbitration will only take place if all parties, including [Debtor], agree to

submit the dispute to arbitration.

B. CONSENT TO COMMONWEALTH COURT LIQUIDATION

Please indicate below whether you consent to resolving the amount of your Designated

Claim(s) before the Commonwealth courts with respect to the Designated Claim(s):

 I/we CONSENT to resolving the amount of my/our Designated Claim(s) before the

Commonwealth courts.

OR

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You cannot select both binding arbitration and Commonwealth court litigation.

If you do not select either binding arbitration or Commonwealth court litigation, the

amount of your claim will be resolved in this Title III Court.

RETURN YOUR COMPLETED NOTICE AND ANY SUPPLEMENTAL INFORMATION

IN A COUNTEROFFER TO [ADDRESS] BY [DEADLINE]

[Signature of the Designated

Claimant’s Authorized Representative]

By: 

[Printed Name]

[N.B. – Additional Signature Lines

as Needed.]

[Signature of the Designated

Claimant's Authorized Representative]

By: 

[Printed Name]

 I/we DO NOT CONSENT to resolving the amount of my/our Designated Claim(s)

before the Commonwealth courts.

Note that the litigation will only take place in the Commonwealth’s Courts if all parties,

including [Debtor], consent to litigate the amount of the Designated Claim(s) before the

Commonwealth Courts.

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1

TRIBUNAL DE DISTRITO DE LOS ESTADOS UNIDOS

PARA EL DISTRITO DE PUERTO RICO

PROMESA

Título III

No. 17-BK-3283-LTS

(Administrados en forma

conjunta)

AVISO DE RESOLUCIÓN ALTERNATIVA DE CONFLICTOS

Fecha de Servicio:

Reclamante(s) designado(s):

Dirección:

Número(s) de reclamo(s) designado(s):

Cantidad(es) indicada(s) en la(s) prueba(s) de reclamo:

FECHA LÍMITE DE RESPUESTA:

1 Los Deudores en estos casos iniciados al amparo del Título III, junto con el número de caso respectivo de cada

Deudor y los últimos cuatro (4) dígitos del número de identificación contributiva federal de cada Deudor, según 

corresponda, son (i) El Estado Libre Asociado de Puerto Rico (el “ Estado Libre Asociado”)(Caso de Quiebras Núm. 

17 BK 3283-LTS) (últimos cuatro dígitos del número de identificación contributiva federal: 3481); (ii) la Corporación 

del Fondo de Interés Apremiante de Puerto Rico (“COFINA”) (Caso de Quiebras Núm. 17 BK 3284-LTS) (últimos 

cuatro dígitos del número de identificación contributiva federal: 8474); (iii) la Autoridad de Carreteras y

Transportación de Puerto Rico (“HTA”) (Caso de Quiebra Núm. 17 BK3567-LTS) (últimos cuatro dígitos del número 

de identificación contributiva federal: 3808); (iv) Sistema de Retiro de los Empleados del Gobierno del Estado Libre 

Asociado de Puerto Rico (“ERS”) (Caso de Quiebra Núm. 17 BK 3566-LTS) (últimos cuatro dígitos del número de

identificación contributiva federal: 9686); y (v) Autoridad de Energía Eléctrica de Puerto Rico (“PREPA”) (Caso de 

Quiebra Núm. 17 BK 4780-LTS) (últimos cuatro dígitos del número de identificación contributiva federal: 3747); y 

(vi) la Autoridad de Edificios Públicos (“PBA”, y junto con el Estado Libre Asociado, COFINA, HTA, ERS, y 

PREPA, los “Deudores”) (Caso de Quiebras Núm. 19 BK 5523-LTS) (los casos al amparo del Título III figuran como 

números el Caso de Quiebra debido a limitaciones de programación)

En el caso:

LA JUNTA DE SUPERVISIÓN Y

ADMINISTRACIÓN FINANCIERA PARA PUERTO

RICO,

como representante del

ESTADO LIBRE ASOCIADO DE PUERTO RICO, y

otros,

Deudores.1

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¿Por qué estoy recibiendo este Aviso? Usted ha presentado su(s) reclamo(s) como se

menciona arriba (el/los “Reclamo(s) Designado(s)”) en el caso del Título III [DEUDOR]. El

Deudor entiende que su(s) Reclamo(s) Designado(s) es/son nulo(s) o está(n) sobreestimado(s)

total o parcialmente, y está preparado para ofrecerse a llegar un acuerdo con usted para una

cantidad menor (en otras palabras, para “transar” el monto de liquidación de su(s) Reclamo(s)

Designado(s) en lugar de iniciar procedimientos solicitándole al Tribunal que reduzca o elimine

su reclamo. Esta Resolución Alternativa de Conflicto incluye la oferta de transacción que le

extiende a usted en la Sección I a continuación.

Descripción General del Procedimiento de RAC. Mediante este Aviso de Resolución

Alternativa de Conflicto (el “Aviso de RAC”), el [Deudor] por la presente presenta el/los

“Reclamo(s) Designado(s) en el caso bajo el Título III para una resolución alternativa de

conflictos, de conformidad con los procedimientos (el “Procedimientos de RAC”) establecidos 

en el Anexo 1 de la Orden Autorizando la Moción para Modificar los Procedimientos 

Alternativos de Resolución de Disputas,emitida por el Tribunal de Distrito de los Estados

Unidos para el Distrito de Puerto Rico (el “Tribunal del Título III”) el día [FECHA]. Se adjunta

una copia de los Procedimientos de RAC para su referencia, donde se describen todos los

métodos que se pueden utilizar para liquidar su(s) Reclamo(s) Designado(s). Por favor revise

los Procedimientos de RAC cuidadosamente.

Se incluye una Oferta de Transacción en la Sección I más adelante. Usted debe

responder a la Oferta de Transacción ya sea aceptando, rechazando, o haciendo una contraoferta.

Si usted y [Deudor] no llegan a un acuerdo, se enviará su reclamo para una mediación

evaluativa, en la que un Mediador estará asistiendo con las esfuerzos por llegar a una acuerdo

transaccional. Vea la Sección [ ] los Procedimientos de RAC. Si esos esfuerzos fracasan, usted

debe decir si acepta proceder con su reclamo mediante arbitraje vinculante, o, si cualifica,

mediante litigio en los Tribunales del Estado Libre Asociado (según se describe a

continuación). Vea las Secciones [ ] de los Procedimientos de RAC. Si usted no escoge alguna

de esas opciones, o si ninguna de las partes está de acuerdo con la opción que usted escoja, su

Este aviso sólo se aplica a los números de reclamaciones designadas mencionados

anteriormente. Lea el aviso detenidamente y discutirlo con su abogado. Si no tiene

un abogado, puede consultar con uno.

Si tiene alguna pregunta, comuníquese con Kroll al (844) 822-9231 (llamada gratis 

para EE. UU. y Puerto Rico) o (646) 486-7944 (para llamadas internacionales),

disponible de 10:00 a.m. a 7:00 p.m. (Hora estándar del Atlántico) (español

disponible).

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3

reclamo se resolverá en este Tribunal del Título III bajo los procedimientos descritos en la

Sección [ ] de los Procedimientos de RAC.

Oferta de Transacción. El [Deudor] ha revisado su(s) Reclamo(s) Designado(s) y de

conformidad con los Procedimientos de RAC, ofrece la(s) cantidad(es) establecida(s) en la

Sección I a continuación como una reclamación [general no prioritario sin garantía/gasto 

administrativo] en la transacción completa y final de la liquidación de su(s) Reclamo(s) 

Designado(s) (la “Oferta de Transacción”). Si su reclamo es un reclamo general no prioritario sin 

garantía, tenga en cuenta que la cantidad de la Oferta de Transacción y cualquier cantidad

que pueda usted aceptar puede que NO sea la cantidad que usted realmente reciba bajo un 

plan de ajuste confirmado. El trato que se le de a su reclamo quedará determinado por el

plan de ajuste. Es posible que la cantidad que a usted se le pague bajo el plan por su 

reclamo sea menor que, y posiblemente sea solamente una fracción del montode liquidación

de su reclamo. Reclamos permitidos de gasto administrativo serán pagados de acuerdo con 

las condiciones del plan de ajuste confirmado.

Debe Responder a Este Aviso. Debe devolver este Aviso de RAC a Proskauer Rose

LLP, con copia a Alvarez & Marsal, conjuntamente con una Respuesta Permitida (como se

define a continuación) a la oferta de transacción antes de la Fecha Límite de respuesta

indicada anteriormente.

Además, si usted está rechazando la Transacción o haciendo una contraoferta, en la

medida en que su(s) prueba(s) de reclamo más reciente(s) no: (a) indique(n) la cantidad correcta

de su(s) Reclamo(s) Designado(s); (b) identifique(n) expresamente todas y cada una de las

causas de acción y teoría(s) legal(es) en las que basa su(s) Reclamo(s) Designado(s); (c) incluya

información de contacto actual, correcta y completa de su abogado u otro representante; o (d)

proporcione todos los documentos en los que apoya su(s) Reclamo(s) Designado(s), debe

proporcionar toda esa información y documentación con su Respuesta Permitida a este Aviso.

Si no devuelve este Aviso de RAC con la información solicitada y una Respuesta

Permitida a la Oferta de Transacción a Proskauer Rose, con copia a Alvarez & Marsal, para que

se reciba en o antes de la fecha límite para responder, se entenderá que usted ha rechazado la

Oferta de Transacción y la liquidación de su(s) Reclamo(s) Designado(s) avanzará a la fase de

los Procedimientos de RAC, según se explican en las Secciones 2(f) y 3 de los Procedimientos 

de RAC o conforme a lo dispuesto para la resolución de reclamaciones no resueltas según 

establecido en la Sección 4 de los Procedimientos de RAC. 

Arbitraje Vinculante o Litigios en Tribunales del Estado Libre Asociado. Si usted

no acepta la Oferta de Transacción, tiene que indicar en la Sección II a continuación si acepta un

arbitraje vinculante de su(s) Reclamo(s) Designado(s) ó que la cantidad de su Reclamo

Designado quede resuelta mediante litigio ante los Tribunales del Estado Libre Asociado. Usted

no puede aceptar ambas opciones. Si usted no acepta ninguna, su reclamo se resolverá ante el

Tribunal del Título III.

El (los) Deudor(es) [han/ no han] dado su consentimiento para presentar su(s)

Reclamo(s) Designado(s), mencionado(s) anteriormente, a un arbitraje vinculante. En

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arbitraje vinculante, el árbitro (en lugar del Tribunal) decidirá la cantidad de su reclamo a ser

liquidada. Por favor sepa que si usted elige participar en un arbitraje vinculante, tendrá

que pagar [$ ], que es el 50% del costo de los servicios del árbitro, además de los 

honorarios de su propio abogado (si tiene alguno) y cualquier costo incidental que 

ustedpueda incurrir.

Usted tiene que indicar en la Sección II a continuación si usted acepta el arbitraje

vinculante. Una vez usted de su consentimiento para participar en el arbitraje vinculante, no

podrá retirar su consentimiento para el arbitraje vinculante. Además, si había dado su

consentimiento por escrito previamente, ya fuese antes o después de que se radicara el caso bajo

el Título III del [Deudor], para el arbitraje vinculante como un medio para resolver su(s)

reclamo(s) contra [Deudor], resultará inefectivo cualquier intento de optar por no participar en el

arbitraje vinculante en respuesta a este aviso.

Si no elige participar en un arbitraje vinculante, puede elegir entonces que los

Tribunales del Estado Libre Asociado determinen la cantidad de su reclamo que habrá de

liquidarse.

Litigio en los Tribunales del Estado Libre Asociado

Los Deudores [han/no han] dado su consentimiento para que la los Tribunales del Estado

Libre Asociado sean los que determinen la cantidad de su Reclamo a liquidarse, sujeto a las

restricciones establecidas en los Procedimientos de RAC. Usted tiene que indicar en la Sección

II a continuación si acepta que los Tribunales del Estado Libre Asociado sean los que determinen

la cantidad de sus reclamos a liquidarse.

Sección I: Oferta de Transacción. [Deudor] le ofrece [una reclamión general no prioritaria no

garantizada permitida/gasto administrativo] por la cantidad de [$ ] contra [Deudor] para satisfacer 

totalmente su(s) Reclamo(s) Designado(s), lo cual se hará conforme a cualquier plan de ajuste de 

deudas confirmado e implementado en el Caso bajo el Título III de [Deudor].

Las únicas respuestas permitidas (“Respuestas Permitidas”) a la Oferta de Transacción

son:

(a) la aceptación de la Oferta de Transacción,

(b) el rechazo de la Oferta de Transacción, o

(c) El rechazo a la Oferta de Transacción junto con una contraoferta (una

“Contraoferta”).

La información sobre las Contraofertas está disponible en la Sección [ ] de los Procedimientos

de RAC.

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Seleccione su Respuesta Permitida en el encasillado a continuación.

DEBE RESPONDER A LA OFERTA DE TRANSACCIÓN Y A LOS OTROS INCISOS

APLICABLES EN EL RESTO DEL FORMULARIO

RESPUESTA A LA OFERTA DE TRANSACCIÓN

 Yo/nosotros aceptamos y estamos de acuerdo con los términos de la Oferta de

Transacción.

(Si usted indica que usted acepta la Oferta de Transacción salte la Sección II, firme

el formulario al final, y devuélvalo a Proskauer Rose LLP con copia a Álvarez y

Marsal. Si usted no está aceptando la Oferta de Transacción, lea cada una de los

siguientes incisos cuidadosamente y responda según corresponda.)

O

 Yo/nosotros rechazamos la Oferta de Transacción.

O Yo/nosotros rechazamos la Oferta de Transacción. Sin embargo, yo/nosotros

aceptaré/aceptaremos una reclamación [general no garantizada permitida/gasto 

administrativo] contra [Deudor] por la cantidad de $ para satisfacer la totalidad del(de los) 

Reclamo(s) Designado(s), que se hará de acuerdo con cualquier plan de ajuste de deudas 

confirmado e implementado en el Caso bajo el Título III del [Deudor].

La Sección [ ] de los Procedimientos de RAC establecen las restricciones a las

contraofertas. Su contraoferta no puede incluir cantidades desconocidas, sin

liquidar o cantidades similares y no pueden exceder la cantidad, o mejorar la

prioridad establecida en su evidencia de reclamo presentada o enmendada más

recientemente de manera oportuna. Usted no puede enmendar su evidencia de

reclamo con el solo propósito de proponer una contraoferta por una cantidad

mayor o para obtener una mayor prioridad. Si usted devuelve este formulario con

una contraoferta que no cumpla con los términos de los Procedimientos de RAC, se

entenderá que ha rechazado la Oferta de Transacción, y la liquidación de su(s)

Reclamo(s) Designado(s) pasará a la mediación evaluativa conforme se establece

en las Secciones [ ] de los Procedimientos de RAC.

Además, si usted está rechazando la Oferta de Transacción o haciendo una

contraoferta, en la medida en que su(s) prueba(s) de reclamo(s) más reciente(s) no

(a) indiquen la cantidad correcta de su(s) Reclamo(s) Designado(s); (b)

expresamente identifiquen todas y cada una de las causas de acción o teorías

legales en la cuales usted basa su(s) Reclamo(s) Designado(s); (c) incluyan

información de contacto corriente, correcta y completa de su abogado u otro

representante; o (d) provea todos los documentos en los que usted apoya su(s)

Reclamo(s) Designado(s), usted TIENE que enviar toda esta información y

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Sección II: Arbitraje Vinculante o Litigios en Tribunales del Estado Libre Asociado.

O

documentación con su Respuesta Permitida a Proskauer Rose, con copia a Alvarez

& Marsal.

A. CONSENTIMIENTO A UN ARBITRAJE VINCULANTE

Indique a continuación si acepta un arbitraje vinculante con respecto a su(s) Reclamo(s)

Designado(s):

 Yo/nosotros CONSIENTO/CONSENTIMOS a un Arbitraje Vinculante.

Yo/Nosotros reconozco/reconocemos que mi/nuestro consentimiento, una vez dado, no se

puede retirar.

Si usted elige participar en arbitraje vinculante, tendrá que pagar [$ ], que es el 50% del

costo de los servicios del árbitro, además de los honorarios de su abogado (si tiene alguno) y

cualquier costo incidental en el que pueda usted incurrir.

O

 Yo/nosotros NO CONSIENTO/CONSENTIMOS a un Arbitraje Vinculante.

El arbitraje vinculante sólo se llevará a cabo si todas las partes, incluyendo a [Deudor],

aceptan someterse la disputa a arbitraje.

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Usted no puede seleccionar el arbitraje vinculante y el litigio en los Tribunales 

delEstado Libre Asociado a la misma vez.

Si usted no selecciona entre el arbitraje vinculante o el litigio en los Tribunales del

Estado Libre Asociado, la cantidad de su reclamo será resuelta en este Tribunal del Titulo

III.

DEVUELVA SU AVISO COMPLETADO Y CUALQUIER INFORMACIÓN

SUPLEMENTARIA EN UNA CONTRAOFERTA A [DIRECCIÓN] PARA [FECHA

LÍMITE].

[Firma del Representate Autorizado

del Reclamante Designado]

Por:

[Nombre en letra de molde]

[Firma del Representate Autorizado

del Reclamante Designado]

Por:

[Nombre en letra de molde]

B. CONSENTIMIENTO PARA LA LIQUIDACIÓN EN EL TRIBUNAL DEL ESTADO

LIBRE ASOCIADO

Indique a continuación si acepta resolver la cantidad de su(s) Reclamo(s) Designado(s) ante

los Tribunales del Estado Libre Asociado con respecto al (los) Reclamo(s) Designado(s):

 Yo/nosotros CONSIENTO/CONSENTIMOS a que se resuelva la cantidad de

mi/nuestros Reclamo(s) Designado(s) ante los tribunales del Estado Libre Asociado.

O

 Yo/nosotros NO CONSIENTO/CONSENTIMOS a que se resuelva la cantidad de

mi/nuestros Reclamo(s) Designados(s) ante los tribunales del Estado Libre Asociado.

El litigio sólo se llevará a cabo en los Tribunales del Estado Libre Asociado si todas las

partes, incluyendo a [Deudor], dan su consentimiento para litigar la cantidad de su(s)

Reclamo(s) Designado(s) ante los tribunales del Estado Libre Asociado.

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EXHIBIT B

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UNITED 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.11

PROMESA

Title III

No. 17 -BK -3283-LTS

(Jointly Administered)

ORDER (A) AUTHORIZING GRANTING MOTION OF THE FINANCIAL OVERSIGHT 

AND MANAGEMENT BOARD FOR PUERTO RICO TO AMEND 

ALTERNATIVE DISPUTE RESOLUTION PROCEDURES,

(B) APPROVING ADDITIONAL FORMS OF NOTICE, AND (C) GRANTING RELATED

RELIEF

 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 (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-5233-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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Upon the Amended Motion for Entry of an Order (a) AuthorizingMotion of the Financial 

Oversight and Management Board for Puerto Rico to Amend Alternative Dispute Resolution 

Procedures, (b) Approving Additional Forms of Notice, and (c) Granting Related Relief, dated 

January 7, 2020 (Docket Entry No. 9718, dated November 22, 2022 (the “Motion”),2 2 of the 

Debtors for entry of an order (this “Order”) authorizing amendment of the alternative dispute 

resolution procedures, approving additional forms of notice, and granting related relief as more 

fully described in the Motion; and

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”)

(BankruptcyCase 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 TransportationAuthority (“HTA”) (Bankruptcy Case No. 17 BK 3567-LTS) (Last 

Four Digits of FederalTax 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 ofFederalTax 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”, and together with the

Commonwealth, COFINA, HTA, ERS, and PREPA, the “Debtors”) (Bankruptcy Case

No. 19-BK-5532-LTS) (Last Four Digits of Federal Tax ID: 3801) (Title III case 

numbers arelisted as Bankruptcy Case numbers due to software limitations).

2 All capitalized terms used but not otherwise defined herein shall have the meanings

ascribed to them in the Motion. this Court having jurisdiction over this matter pursuant to 

PROMESA section 306(a); and it appearing that venue is proper pursuant to PROMESA section 

307(a); and the Court having found that the relief requested in the Debtors’ Motion is in the best 

interests of the Debtors, their creditors, and other parties in interest; and the Court having found 

 2 All capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Motion.

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that, based upon the relief requested by the Debtors’ Motion, no other or further notice is 

required; and the Court having determined that the legal and factual bases set forth in the 

Debtors’ Motion establish just cause for the relief granted herein; and any objections to the relief 

requested herein having been resolved as set forth herein, or withdrawn or overruled on the 

merits; and after due deliberation and sufficient cause appearing therefor,

IT IS HEREBY ORDERED THAT:

1. 1. The Motion is granted to the extent set forth herein. 

2. Sections 2(c), 2(f), 3(c), 3(e), 6(c), 7(b), and 7(c) of the ADR Procedures are hereby 

amended as follows:

2. Offer Exchange Procedures

c) Within twenty-five (25) days of service of an Offer via either an Offer 

Letter or an ADR Notice, the Designated Claimant must respond to such 

Offer by (1) accepting the Offer, by execution and delivery of a stipulation 

provided by the Commonwealth or such other Debtor in connection with 

the Offer or (2) submitting a counteroffer (the “Counteroffer”); provided, 

however, that any Counteroffer may only propose an amount that, if agreed 

upon, will fix the amount of the creditor’s claim; and, provided, further, 

that, if the creditor fails to timely respond to the Offer Letter, the Offer shall 

be deemed rejected. If the Designated Claimant rejects, or is deemed to 

have rejected, the Offer, and the Debtor files an Offer Exchange Impasse 

Notice (as defined below) that complies with Section 2(f) below, the 

Designated Claim will advance to the next step of the ADR Procedures, as 

set forth below.

...

f) Within thirty (30) days of receipt of any Counteroffer, the 

Commonwealth or such other Debtor, as the case may be, may (1) accept 

such Counteroffer, by delivery of a stipulation evidencing agreement to the 

proposed amount, or (2) reject such Counteroffer, by delivery of notice to 

such Designated Claimant that such Counteroffer is unacceptable. The 

Commonwealth or such other Debtor, as the case may be, may also submit 

its own counteroffer to the creditor, and the parties may exchange as many

offers and counteroffers (each, a “Further Offer”) as they deem appropriate

prior to a determination that an impasse has been reached. The Debtors or the

Designated Claimant shall have thirty (30) days from receipt of each such

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Further Offer (1) to accept such Further Offer,by delivery of a stipulation 

evidencing agreement to the proposed amount, or (2) to reject such Further 

Offer, by delivery of notice that such Further Offer is unacceptable. Failure 

to respond toa Further Offer within thirty (30) days of receipt shall be 

deemed rejection of such Further Offer. The Commonwealth or such other 

Debtor, as the case may be, may also request additional information or 

documentation (the “Information Request”) from the Designated Claimant.

The Designated Claimant shall provide additional documentation or 

information in response to such Information Request within twenty-one

(21) days following receipt of such Request. Within ten (10) days of either 

the Designated Claimant’s or the Debtor’s rejection of an Offer, Counteroffer,or 

Further Offer, the Debtor(s) shall file a notice of impasse (the “Offer Exchange 

Impasse Notice”) with the Title III Court. If the Designated Claimant is 

deemed to have rejected an Offer or a Further Offer by failing to timely 

respond to an Offer or Further Offer, the Offer Exchange Impasse Notice 

must include a certification that the Debtor has been in contact with the 

Designated Claimant and the Designated Claimant has consented to 

proceed to Evaluative Mediation (as defined below). If the Designated 

Claimant fails to respond to reasonable outreach from the Debtor, or if 

the Designated Claimant informs the Debtor that it does not consent to 

Evaluative Mediation, the corresponding Designated Claim will be 

treated as an Unresolved Claim (as defined below).

...

3. Evaluative Mediation

c) During the Evaluative Mediation process, the Designated Claim shall be 

evaluated by the assigned Mediator. The Debtors shall provide notice to the 

Designated Claimant within a reasonable time following the assignment of

a Mediator to a Designated Claim. Upon assignment of a Mediator to a 

Designated Claim, the Debtor shall provide the Mediator, with copy to the 

Designated Claimant, with all information exchanged during the Offer 

Exchange process. Within fourteen (14) days of assignment of the Mediator, 

each party may provide to the Mediator a mediation statement (the

“Mediation Statement”), not to exceed seven (7) pages double-spaced.

Within twenty-eight (28) days of receipt of the information exchanged 

during the Offer Exchange process, the Mediator shall estimate the 

monetary value of the Designated Claim (the “Evaluation”). Upon notice to 

the parties, the Mediator may extend the time period for completion of the 

Evaluation for a period of no more than fourteen (14) days. The Evaluation 

shall be limited to a determination of the monetary value, if any, of the 

Designated Claim, and shall not raise or purport to evaluate any issues 

relating to the potential treatment or priority of the Designated Claim

pursuant to a plan of adjustment. If the Mediator fails to issue an Evaluation 

within the time periods set forth in this paragraph, the Designated Claim 

shall proceed to binding arbitration, where both parties have consented to 

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same, or to litigation before the Commonwealth or Title III Courts, as the 

case may be. If a Designated Claimant fails to submit a Mediation 

Statement, the Mediator may solicit engagement of the Designated 

Claimant in advance of the formulation of the Evaluation. This 

outreach by the Mediator shall include notifying the Designated 

Claimant that failure to respond and participate may result in the 

termination of the Evaluative Mediation process without further

advance notice. If the Designated Claimant is nonresponsive to the 

Mediator’s reasonable effort(s) at outreach during the Evaluative

Mediation process, a Mediator may file a Notice of Non-Engagement.

The Notice of Non-Engagement shall identify the party’s failure to

engage in the Evaluative Mediation process and indicate that the

Mediator has determined that there is insufficient engagement or

information to warrant the formulation and issuance of an Evaluation.

The Meditator’s filing of a Notice of Non- Engagement will terminate

the Evaluative Mediation and the corresponding Designated Claim will

be treated as an Unresolved Claim (as defined below).

...

e) At any time during Evaluative Mediation, the Mediator may request that 

the parties participate in a settlement conference. The parties must 

participate in any settlement conference called by the Mediator. Such 

conference may take place in person or telephonically, in the Mediator’s 

sole discretion. The Evaluative Mediation process shall terminate upon the 

earlier of: (a) the Mediator’s filing of a notice that (i) a Notice of NonEngagement, (ii) a notice that the parties have reached an impasse (a 

“Mediator’s Impasse Notice”), or (iii) a notice that the parties have reached 

a settlement (such notice shall specify the settlement amount, which shall 

constitute the liquidated amount of the Designated Claim and the Claims 

Register shall be updated accordingly); and (b) 75 days after the issuance of 

the Evaluation.

...

6. Commonwealth Court Litigation of Unresolved Claims

...

c) For purposes of the ADR Procedures, the The Commonwealth’s 

courts will only resolve the amount of a creditor’s general unsecured claim 

or Administrative Expense Priority Claim.

1 Without limiting the 

foregoing, any other issue, including, without limitation, the priority or 

classification of a claim, distributions with respect thereto, and issues 

related to subordination thereof, shall not be subject to the Commonwealth 

court’s determination and shall be determined in connection with the 

provisions of an applicable plan of adjustment or as otherwise determined 

by the Title III Court.

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1

As used herein, the term “Administrative Expense Priority Claim” shall mean a 

claim allowable under Bankruptcy Code sections 503(b) and 507(a)(2) as an 

administrative expense; provided, however, that it shall not include Title III 

professionals’ claims for compensation and reimbursement of fees and expenses, 

including claims for compensation and reimbursement authorized pursuant to 

PROMESA Section 316.

...

7. General Provisions Regarding ADR Procedures

...

b) The ADR Procedures will only resolve the amount of a creditor’s general 

unsecured claim or Administrative Expense Priority Claim. Without 

limiting the foregoing, any other issue, including, without limitation, the 

priority or classification of a claim, distributions with respect thereto, and 

issues related to subordination thereof, shall not be subject to the ADR 

Procedures and shall be determined in connection with the provisions of an 

applicable plan of adjustment or as otherwise determined by the Title III 

Court. 

c) To the extent a holder of a general unsecured claim or Administrative 

Expense Priority Claim has filed, sought or seeks any relief related to a 

Claim that is subject to the ADR Procedure, including, without limitation, 

relief sought in any adversary proceeding or any other applicable court of 

law (collectively, the “Actions”), and such Designated Claimant has not 

elected to liquidate their Claim through the process outlined in Section 6 

above, such Actions shall be stayed (including with respect to pending 

discovery) until the ADR Procedure with respect to such Claim has been 

completed. Within five (5) business days of entry of a final order with 

respect to the validity and amount of such Claim in the ADR Procedure, a 

motion shall be filed in the applicable forum to dismiss any corresponding 

portion of such Action, with prejudice, and to transfer any remaining portion 

of such Action, to the extent not pending or subject to the Debtors’ Title III 

cases, to the Title III Court presiding over the Debtors’ Title III cases. To 

the extent required, the automatic stay, extant pursuant to section 362 of the 

Bankruptcy Code, applicable herein in accordance with section 301 of 

PROMESA, shall be deemed modified solely for the purpose of 

determining the validity and amount of a claim pursuant to the ADR 

Procedure. 

2. The Debtors are hereby authorized to resolve claims through the ADR

Proceduresas set forth in the Motion and

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3. The ADR Procedures, as amended (the “Amended ADR Procedures”), are

attached hereto as Exhibit 1.

3. Nothing in this Order or in the Motion is, or shall be deemed to constitute, any

admission as to the validity, nature, amount, or priority of any claim asserted against the Debtors

in these PROMESA cases, or a waiver of any right of the Debtors or any other party in interest 

inthese cases to dispute the validity, nature, amount, or priority of, or otherwise object, either in 

thesame or subsequent objections, on any grounds to any such claims.1.3 

4. 4. The Debtors’ proposed form of notice to be filed and served in connection with the 

Amended ADR ProcedureProcedures, attached hereto as Exhibit 2, is approved.

5. 5. The Debtors are authorized to take any and all actions reasonably necessary or 

appropriate to effectuate the relief granted pursuant to this Order in accordance with the Motion.

6. The Debtors’ right to seek further amendment of the Amended ADR Procedures 

is preserved.

7. This Order resolves docket entry No. ______

6. 8. This Court retains exclusive jurisdiction with respect to all matters arising from or related 

to the implementation, interpretation, and enforcement of this Order.

7. Pursuant to Local Civil Rule 1(f) of the United States District Court for the

District of Puerto Rico, this Order suspends the Court’s Local Civil Rule 83J for the specific

TitleIII cases captioned above and their related adversary proceedings.

8. This Order resolves Docket Entry Nos. 7224, 9718, 11971, and 12499.

 3 The Amended ADR Procedures also include the edits set forth in the Court’s Order Amending Alternative Dispute 

Resolution Procedures [ECF No. 15505], dated December 29, 2020.

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SO ORDERED.

Dated: April 1, 2020 /s/ Laura Taylor Swain , 2022

 LAURA TAYLOR SWAIN

 United States District Judge

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EXHIBIT 1

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AMENDED ALTERNATIVE DISPUTE RESOLUTION PROCEDURES

1. Claims Subject to the Alternative Dispute Resolution Procedures.

a) Commencing one hundred (100) days following approval of these procedures by the Court, and

every forty-five (45) days thereafter, the Commonwealth, on behalf of itself and the other Debtors,

shall file with the Court and serve on the claimants identified therein (the “Designated Claimants”),

at the address listed on the claimants’ most recently filed proof of claim or amended proof of claim,

as the case may be, a notice of intent to transfer to the ADR Procedure (the “ADR Transfer

Notice”), and attaching as Exhibit A to the ADR Transfer Notice a schedule of claims that the

Debtors have identified to be eligible to participate in the ADR Procedure. The ADR Transfer

Notice shall be substantially in the form reflected in Exhibit A to the Notice Regarding Amended

Motion for Entry of an Order (A) Authorizing Alternative Dispute Resolution Procedures, (B)

Approving Additional Forms of Notice, and (C) Granting Related Relief [ECF No. 10698-1].

b) In the event that (i) the Debtors file an omnibus objection to Claims, (ii) a claimant objects to the

relief requested in such omnibus objection, and (iii) the Court or the Debtors determine that further

reconciliation of any such Claim is appropriate pursuant to the ADR Procedure, the Debtors shall

file an ADR Transfer Notice with the Court and serve the ADR Transfer Notice upon the Claimant

stating that such Claim has been removed from the omnibus objection and shall be subject to the

ADR Procedure. If the Debtors make such determination, within ten (10) days of service of a

claimant’s objection to the relief requested in the omnibus objection, and no later than seven (7)

days prior to the hearing on the omnibus objection, the Debtors shall file an ADR Transfer Notice

with the Court setting forth the Claims to which an omnibus objection has been interposed and

responded to by the holder thereof as and to which the Debtors have determined are eligible for

the ADR Procedure. In the event that the Court determines independently that further

reconciliation of any such claim(s) is appropriate pursuant to the ADR Procedures, the Court will

enter an order directing the Debtors to file an ADR Transfer Notice with the Court, specifying the

claim(s), and serve the ADR Transfer Notice upon the relevant Claimant(s).

c) The Debtors shall serve upon the Designated Claimant, at the address listed on the Designated

Claimants’ most recently filed proof of claim or amended proof of claim, as the case may be, a

notice regarding the ADR Procedure (the “ADR Notice”). The proposed form of the ADR Notice

is annexed hereto as Exhibit 2. The ADR Notice (i) may request that the Designated Claimant

verify, correct, clarify, or supplement certain information regarding their claim, and (ii) shall state

(a) whether the Debtor consentsto the adjudication of the Claim by binding arbitration, as set forth

below, and (b) the costs of arbitration, if the Designated Claim is not resolved pursuant to the Offer

Exchange Procedures (as defined below) or Evaluative Mediation (as defined below).

d) Claims asserting liabilities arising from funded indebtedness, or from the Commonwealth’s

clawback of revenues, shall not be subject to the ADR Procedure.

2. Offer Exchange Procedures

a) The initial step in the ADR Procedure shall be an exchange of settlement offers (the “Offer

Exchange”), which exchange will provide the Debtors and the Designated Claimants the

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opportunity to resolve the underlying Claims on a consensual basis, without the need for further

proceedings.

b) In the event that the ADR Notice does not include an offer from the Debtor(s) (the “Offer”) to

settle the validity and amount ofsuch Designated Claimant’s proof of claim, within sixty (60) days

of the ADR Notice being served upon the Designated Claimants, the Commonwealth or such other

Debtor, as the case may be, shall serve upon the Designated Claimant, at the address set forth on

such Designated Claimant’s proof of claim, an Offer (the “Offer Letter”). The Offer Letter or ADR 

Notice shall be accompanied by relevant documentation relied upon by the Debtor(s) in

determining the amount of the offer. For the avoidance of doubt, however, the Debtor(s) shall not

be obligated to provide with the Offer Letter or ADR Notice all documents on which it intends to

rely in reconciling a creditor’s Claim.

c) Within twenty-five (25) days of service of an Offer via either an Offer Letter or an ADR Notice, 

the Designated Claimant must respond to such Offer by (1) accepting the Offer, by execution and 

delivery of a stipulation provided by the Commonwealth or such other Debtor in connection with 

the Offer or (2) submitting a counteroffer (the “Counteroffer”); provided, however, that any 

Counteroffer may only propose an amount that, if agreed upon, will fix the amount of the creditor’s 

claim; and, provided, further, that, if the creditor fails to timely respond to the Offer Letter, the 

Offer shall be deemed rejected. If the Designated Claimant rejects, or is deemed to have rejected, 

the Offer, and the Debtor files an Offer Exchange Impasse Notice (as defined below) that complies 

with Section 2(f) below, the Designated Claim will advance to the next step of the ADR 

Procedures, as set forth below.

d) When the Designated Claimant responds to the Offer Letter, either by acceptance of the Offer or

the submission of a Counteroffer, the Designated Claimant shall be required to notify the Debtors

if (a) it consents to (and thereby opts into) or (b) does not consent to (and thereby opts out of)

binding arbitration in the event that the Claim ultimately is not resolved through the Offer

Exchange Procedures. If the Designated Claimant returns the Offer Letter without expressly

notifying the Debtors that it consents to, and seeks to opt into, binding arbitration, the Designated

Claimant shall be deemed to have opted out of binding arbitration. Any Designated Claimant that

does not consent to binding arbitration in its response to the Offer Letter may later consent, in

writing, to binding arbitration, provided that the Debtors also so consent. Consent to binding

arbitration, once given, cannot subsequently be withdrawn by either the Debtor or the Designated

Claimant.

e) The Counteroffer may not exceed the amount or improve the priority set forth in the Designated

Claimant’s most recent timely filed proof of claim or amended proof of claim (but may liquidate

any unliquidated amounts expressly referenced in a proof of claim).

f) Within thirty (30) days of receipt of any Counteroffer, the Commonwealth or such other Debtor,

as the case may be, may (1) accept such Counteroffer, by delivery of a stipulation evidencing

agreement to the proposed amount, or (2) reject such Counteroffer, by delivery of notice to such

Designated Claimant that such Counteroffer is unacceptable. The Commonwealth or such other

Debtor, as the case may be, may also submit its own counteroffer to the creditor, and the parties

may exchange as many offers and counteroffers(each, a “Further Offer”) as they deem appropriate

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prior to a determination that an impasse has been reached. The Debtors or the Designated Claimant 

shall have thirty (30) days from receipt of each such Further Offer (1) to accept such Further Offer,

by delivery of a stipulation evidencing agreement to the proposed amount, or (2) to reject such

Further Offer, by delivery of notice that such Further Offer is unacceptable. Failure to respond to

a Further Offer within thirty (30) days of receipt shall be deemed rejection of such Further Offer. 

The Commonwealth or such other Debtor, as the case may be, may also request additional

information or documentation (the “Information Request”) from the Designated Claimant. The

Designated Claimant shall provide additional documentation or information in response to such

Information Request within twenty-one (21) days following receipt of such Request. Within ten 

(10) days of either the Designated Claimant’s or the Debtor’s rejection of an Offer, Counteroffer,or Further 

Offer, the Debtor(s) shall file a notice of impasse (the “Offer Exchange Impasse Notice”) with the Title III 

Court. If the Designated Claimant is deemed to have rejected an Offer or a Further Offer by failing to 

timely respond to an Offer or Further Offer, the Offer Exchange Impasse Notice must include a 

certification that the Debtor has been in contact with the Designated Claimant and the Designated 

Claimant has consented to proceed to Evaluative Mediation (as defined below). If the Designated 

Claimant fails to respond to reasonable outreach from the Debtor, or if the Designated Claimant 

informs the Debtor that it does not consent to Evaluative Mediation, the corresponding Designated 

Claim will be treated as an Unresolved Claim (as defined below).

g) All Offers, Counteroffers, Further Offers, and other communication and information exchanged in

connection therewith shall remain confidential, be subject to Rule 408 of the Federal Rules of

Evidence, not be an admission of liability on anyone’s part, not be disclosed to any person, court

or tribunal, and not be used other than in connection with the ADR Procedure.

3. Evaluative Mediation

a) In the event that a Claim is not resolved through the Offer Exchange process, the Claim will

proceed to the next step of the ADR Procedures, an evaluation (“Evaluative Mediation”) of the

Designated Claimant’s claim by a mediator (“Mediator”) identified by the Title III Court in itssole

and absolute discretion, including a federal judge. The purpose of the Evaluative Mediation phase

of the ADR Procedures is to obtain a non-binding, confidential, monetary valuation of each

Designated Claim that may assist in achieving settlement by serving as a focal point for further

discussions between the parties.

b) During the Mediation phase, the Title III Court may design a process for assigning Mediators to

Designated Claims, including a process to identify whether any individual Mediator may be

conflicted from resolving a Designated Claim.

c) During the Evaluative Mediation process, the Designated Claim shall be evaluated by the assigned

Mediator. The Debtors shall provide notice to the Designated Claimant within a reasonable time 

following the assignment of a Mediator to a Designated Claim. Upon assignment of a Mediator to 

a Designated Claim, the Debtor shall provide the Mediator, with copy to the Designated Claimant, 

with all information exchanged during the Offer Exchange process. Within fourteen (14) days of 

assignment of the Mediator, each party may provide to the Mediator a mediation statement (the

“Mediation Statement”), not to exceed seven (7) pages double-spaced. Within twenty-eight (28)

days of receipt of the information exchanged during the Offer Exchange process, the Mediator 

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shall estimate the monetary value of the Designated Claim (the “Evaluation”). Upon notice to the

parties, the Mediator may extend the time period for completion of the Evaluation for a period of

no more than fourteen (14) days. The Evaluation shall be limited to a determination of the 

monetary value, if any, of the Designated Claim, and shall not raise or purport to evaluate any 

issues relating to the potential treatment or priority of the Designated Claim pursuant to a plan of

adjustment. If the Mediator fails to issue an Evaluation within the time periods set forth in this 

paragraph, the Designated Claim shall proceed to binding arbitration, where both parties have

consented to same, or to litigation before the Commonwealth or Title III Courts, as the case may 

be. If a Designated Claimant fails to submit a Mediation Statement, the Mediator may solicit 

engagement of the Designated Claimant in advance of the formulation of the Evaluation. This 

outreach by the Mediator shall include notifying the Designated Claimant that failure to respond 

and participate may result in the termination of the Evaluative Mediation process without further

advance notice. If the Designated Claimant is nonresponsive to the Mediator’s reasonable effort(s)

at outreach during the Evaluative Mediation process, a Mediator may file a Notice of NonEngagement. The Notice of Non-Engagement shall identify the party’s failure to engage in the 

Evaluative Mediation process and indicate that the Mediator has determined that there is 

insufficient engagement or information to warrant the formulation and issuance of an Evaluation.

The Meditator’s filing of a Notice of Non- Engagement will terminate the Evaluative Mediation 

and the corresponding Designated Claim will be treated as an Unresolved Claim (as defined

below).

d) Within twenty-one (21) days following the issuance of the Evaluation, each of the parties shall

submit to the Mediator a written acceptance or rejection of the Evaluation. The failure to submit

a written acceptance or rejection within twenty-one (21) days shall constitute a rejection of the

Evaluation. If both parties accept the Evaluation, then the Designated Claim shall be deemed

settled and the amount set forth in the Evaluation shall constitute the liquidated amount of the

Designated Claim and the Claims Register shall be updated accordingly. If one or both parties

rejects the Evaluation, then the parties shall have an additional fourteen (14) days to negotiate a

consensual settlement of the Designated Claim. The Debtor shall notify the Mediator immediately

after the expiration of the 14-day period as to whether a consensual settlement has been reached.

e) At any time during Evaluative Mediation, the Mediator may request that the parties participate in 

a settlement conference. The parties must participate in any settlement conference called by the 

Mediator. Such conference may take place in person or telephonically, in the Mediator’s sole 

discretion. The Evaluative Mediation process shall terminate upon the earlier of: (a) the Mediator’s 

filing of a notice that (i) a Notice of Non-Engagement, (ii) a notice that the parties have reached 

an impasse (a “Mediator’s Impasse Notice”), or (iii) a notice that the parties have reached a 

settlement (such notice shall specify the settlement amount, which shall constitute the liquidated 

amount of the Designated Claim and the Claims Register shall be updated accordingly); and (b) 

75 days after the issuance of the Evaluation..

f) In the event that a Designated Claim is not resolved through Offer Exchange or Evaluative

Mediation (an “Unresolved Claim”), such Designated Claim shall be resolved in accordance with

the process outlined in Section 4 below. Within ten (10) days of the termination of Evaluative

Mediation (as set forth in Section 3(e) above), the Debtor(s) shall serve upon the Designated

Claimant a notice describing the opportunity to participate in binding arbitration and the

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opportunity for use of Commonwealth court procedures.

4. Resolution of Unresolved Claims

a) The amount of an Unresolved Claim shall be resolved by either: (a) binding arbitration as set forth

in Section 5 below, if the Designated Claimant and the Debtor consented in writing thereto; (b)

litigation before the Commonwealth’s courts, as set forth in Section 6 below; or (c) if either party

determines that the Designated Claim should not be resolved using state court procedures, and in

the event that both parties have not consented to binding arbitration, the Designated Claim shall

be resolved in accordance with the Litigation procedures set forth in Section 8 below. Designated

Claimants may consent to binding arbitration OR to litigate before the Commonwealth’s courts,

but not both. In the event that a Designated Claimant submits an ADR Notice that indicates consent 

to binding arbitration and litigation before the Commonwealth’s courts, they will be deemed to 

have consented to litigate before the Commonwealth’s courts.

5. Binding Arbitration

a) If the Designated Claimant previously consented in writing to binding arbitration as a means to

resolve its claim(s) as set forth above (either in its response to the Offer Letter or by the terms of

a separate written agreement either before or after the Petition Date), and if the Debtors agree to

binding arbitration, and such Designated Claim is not resolved in the Offer Exchange Procedures

or in Evaluative Mediation, then the Designated Claim shall be subject to binding arbitration. If

the Designated Claimant has not expressly consented to binding arbitration in its response to the

Offer Letter and has not otherwise expressly consented to binding arbitration, or if the Debtors

have not consented to binding arbitration, at the conclusion of Evaluative Mediation, the Claim

shall be resolved in accordance with the Commonwealth court procedures described below or the

Litigation procedures described below.

b) If the Designated Claimant and the Debtors have agreed to binding arbitration, as soon as

reasonably practicable following the Evaluation Termination Date with respect to any Designated

Claim, the Debtors shall file and serve on the applicable Designated Claimant (or their counsel if

known), a notice of arbitration (an “Arbitration Notice”).

c) The Debtors shall solicit proposals from one or more arbitration services providers (the

“Provider”), with a panel of arbitrators (“Arbitrators,” and each, an “Arbitrator”), to assist in

evaluating Designated Claims. The Debtors shall consult with the Official Committee of

Unsecured Creditors prior to selecting the Provider. Prior to engaging such Provider, the Debtors

shall file an informative motion with the Court identifying the Provider(s) whose services they

have solicited. To the extent any party in interest objects to the independence or qualifications of

the Provider(s), such party must file a written notice of such objection within fourteen (14) days

of the filing of such informative motion. Within seven (7) days thereafter, the Debtors may file a

reply in support of the Provider(s) identified. The Court will then determine whether any further

action with respect to the objection(s) is required. Once a Provider of arbitration services has been

selected, that provider’s pricing proposals shall govern all binding arbitrations conducted pursuant

to the process outlined in this Section 5. During the Arbitration phase, each Designated Claim shall 

be evaluated by a single Arbitrator from the Provider of arbitration services selected by the

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Debtor(s) as described in subsection (d) below. The method by which an Arbitrator shall be

assigned to a Designated Claim shall be determined by the Provider. The Provider and the

Arbitator(s) shall ensure that, in the event an individual Arbitrator identifies a conflict in resolving

a Designated Claim that has been assigned to such Arbitrator, the Designated Claim shall be reassigned.

d) All costs for an Arbitrator’s services shall be divided evenly between the Debtor(s) and the

Designated Claimant. To ensure transparency in the costs of proceeding through binding

arbitration, the Debtors shall solicit pricing proposals from at least two (2) potential Providers of

arbitration services.

e) All arbitration hearings (each, an “Arbitration Hearing”) shall be scheduled by the Arbitrator, in

consultation with the parties. The Debtors shall provide the Designated Claimant with notice of

the date, time and place of the Arbitration Hearing. In the event that the Arbitrator assigned to

resolve a particular Claim is not located in San Juan, Puerto Rico, appropriate video-conferencing

services shall be made available, and any cost of such services will be divided evenly between the

Debtors and the Designated Claimant if not already included in the Provider’s fee.

f) Pre-Hearing. Any pre-hearing issues, matters or disputes (other than with respect to merits issues)

shall be presented to the Arbitrator telephonically (or by such other method agreed to by the

Arbitrator and the parties) for expeditious, final and binding resolution. All pre-hearing issues,

matters or disputes (other than with respect to merits issues) must be presented to the Arbitrator not 

later than twenty-one (21) days prior to the Arbitration Hearing so as to permit the Arbitrator to 

review and rule upon the requests by telephonic or email communication at least five (5) days prior

to the Arbitration Hearing.

g) Limited Discovery. Unless the parties agree otherwise, discovery shall be limited to ten (10)

requests for production of documents, electronically stored information and things, including all

discrete subparts (“Document Requests”); ten (10) requests for admission, including all discrete

subparts; and ten (10) hours of depositions. Any such Document Requests, requests for admission,

and notices of deposition shall be made in writing and shall be served by electronic mail and

overnight mail no later than by 5:00 p.m., Atlantic Time, on a weekday that is not a legal holiday,

no fewer than thirty-five (35) days before the Arbitration Hearing. Responses and objections to

Document Requests, requests for admission, and notices of deposition, if any, must be served

within seven (7) days after service ofsuch Document Requests, requests for admission, and notices

of deposition. Items requested in Document Requests must be produced within fourteen (14) days

after service of the Document Requests, unless the parties agree otherwise. Fact or expert witness

affidavits, to the extent needed, must be submitted at least fourteen (14) days prior to the scheduled

Arbitration Hearing. All documents and affidavits from discovery shall be confidential and shall

not be either (i) disclosed to any person or party not participating in the arbitration proceeding or

(iii) used for any purpose other than in connection with the arbitration proceeding, except as

provided herein. By accepting binding arbitration, the parties agree that no interrogatories shall

be posited. Notwithstanding anything to the contrary in this paragraph, the Arbitrator may modify

any provisions regarding discovery for good cause shown.

h) Pre-Arbitration Statement. On or before fourteen (14) days prior to the scheduled Arbitration

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Hearing, each party shall submit to the arbitrator and serve on the other party or parties by

electronic mail and overnight mail a pre-arbitration statement (the “Pre-Arbitration Statement”).

The Pre-Arbitration Statement shall not exceed twenty (20) pages, double spaced, exclusive of

attachments. Quotations and footnotes may be single spaced. At least one-inch margins shall be

used, and printing shall not be smaller than 12-point font.

i) Arbitration Hearing. Unless otherwise agreed by the parties and the arbitrator, the Arbitration

Hearing must be held no later than seventy-five (75) days following assignment of the Arbitrator

to the Designated Claim. Direct testimony shall be submitted in the form of affidavits. Cross

examination shall be conducted via live testimony. Each party shall have a maximum of two hours,

including any rebuttal and cross-examination, within which to present its position at the Arbitration

Hearing. The Arbitration Hearing shall be open only to the parties, their counsel and any witnesses.

Non-party witnesses shall be sequestered. No reply briefs or post-hearing briefs may be filed,

unlessthe arbitrator requests such briefs, in which case, such briefing shall be subject to the issues,

timing and page limitations the arbitrator imposes.

j) Arbitration Awards. The Arbitrator shall issue a short written opinion and award (the “Arbitration

Award”) within fifteen (15) days after the last day of the Arbitration Hearing; provided, however,

that the arbitrator may extend such period once for an additional fifteen (15) days. Any Arbitration

Award shall only determine the amount of the Claim and shall not raise or determine any issues

relating to the treatment or priority of the Designated Claim.

k) Finality of Arbitration Awards. All Arbitration Awardsshall be final and binding. Any application

to vacate must be limited to the grounds specified in 9 U.S.C. § 10(a) and must be filed with the

Title III Court within thirty (30) days of issuance of the Arbitration Award. The Federal Arbitration 

Act, which has been codified at 9 U.S.C. §§ 1-307, shall apply to such applications. Once the

Arbitration Award isissued, the Claims Registry shall be updated to reflect the liquidatedamount of

the Designated Claim, as determined by the Arbitration Award.

6. Commonwealth Court Litigation of Unresolved Claims

a) The Debtors shall indicate in the ADR Notice whether they consent to liquidate any portion of a

Claim through the Commonwealth’s courts. For the avoidance of doubt, the Debtors do not consent 

to liquidation of any claims or causes of action relating to PROMESA or other federal laws before

the Commonwealth’s courts.

b) In the event that a Designated Claimant elects to liquidate their Claim before the Commonwealth’s

courts, and the Debtors have consented to such liquidation, the Title III stay shall be modified

solely (1) to permit the continuation of those matters that have been initiated in the

Commonwealth’s courts and that the Designated Claimant has alleged in their Claim give rise to

liabilities owed by the Debtors, or (2) to permit the Designated Claimant to commence a new action

in the Commonwealth’s courts, provided, however, that any such new action shall be limitedto 

causes of action giving rise to the exact same liabilities asserted in their Claim. To the extent any 

Designated Claimant raises additional claims or causes of action beyond those giving rise to

liabilities asserted in their Claim, or raises any claims or causes of action relating to PROMESA

or other questions of federal law, the Title III stay shall not be lifted as to such claims or causes of

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action. Any statute of limitations applicable to such causes of action shall be deemed tolled as of

the date of filing of the Debtors’ Title III petitions. Claimants shall retain all existing appeal rights

to which they are entitled under Commonwealth law. The Debtors shall file an omnibus motion,

every sixty (60) days, identifying each automatic stay modification agreed to by the Debtors during

the relevant period and seeking Court approval of such modifications nunc pro tunc to the relevant

modification date (each, an “ADR Omnibus Lift Stay Motion”).

c) For purposes of the ADR Procedures, the The Commonwealth’s courts will only resolve the

amount of a creditor’s general unsecured claim or Administrative Expense Priority Claim.1 

Without limiting the foregoing, any other issue, including, without limitation, the priority or

classification of a claim, distributions with respect thereto, and issues related to subordination

thereof, shall not be subject to the Commonwealth court’s determination and shall be determined

in connection with the provisions of an applicable plan of adjustment or as otherwise determined

by the Title III Court.

d) Litigation before the Commonwealth’s courts with respect to any Unresolved Claim shall proceed

in accordance with all applicable local proceduralrules. Each party shall bear their own costs with

respect to any litigation before the Commonwealth’s courts, unless local procedural rules or

statutory fee shifting provisions dictate otherwise.

e) Nothing herein shall limit the rights of any defendant in an action brought in the Commonwealth’s

courts to remove such action pursuant to 28 U.S.C. § 1441, or of any plaintiff to contest such

removal. Any modifications of the automatic stay, as set forth in and pursuant to the limitations

described in Section 6.b, will remain in effect if an action is removed to the United States District

Court for the District of Puerto Rico. The applicable federal procedural rules shall govern any such

removed action.

f) Once a final judgment (the “Commonwealth Final Judgment”) has been reached with respect to

the amount of an Unresolved Claim litigated in the Commonwealth courts, as the term “final

judgment” is interpreted under Commonwealth law, the Claims Registry shall be updated to reflect

the liquidated amount of the Designated Claim, as determined by the Commonwealth Final

Judgment.

7. General Provisions Regarding ADR Procedures

a) In the event that a claimant elects not to participate in Arbitration or to have their Unresolved

Claim liquidated by the Commonwealth’s courts, (a) such claim, the allowance of which has been

or may be objected to by the Commonwealth, such other Title III Debtor as appropriate, or another

party in interest, shall be subject to the jurisdiction of the Title III Court and the determination

regarding, among other things, the validity and amount thereof, shall be made by the Court, (b)

holders shall retain their rights to have their claims adjudicated by the Title III Court, including

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their rights to evidentiary proceedings and to an appeal of the Title III Court’s determinations with

respect to their claims, and (c) nothing herein shall affect the right of the Creditors’ Committee,

under section 502(a) of the Bankruptcy Code, to file objections to claims and the Debtors and the

Oversight Board to oppose any such right to the extent that the Creditors’ Committee files an

objection to a claim.

b) The ADR Procedures will only resolve the amount of a creditor’s general unsecured claim or 

Administrative Expense Priority Claim. Without limiting the foregoing, any other issue, including, 

without limitation, the priority or classification of a claim, distributions with respect thereto, and 

issues related to subordination thereof, shall not be subject to the ADR Procedures and shall be 

determined in connection with the provisions of an applicable plan of adjustment or as otherwise

determined by the Title III Court.

c) To the extent a holder of a general unsecured claim or Administrative Expense Priority Claim has 

filed, sought or seeks any relief related toa Claim that is subject to the ADR Procedure, including, 

without limitation, relief sought in any adversary proceeding or any other applicable court of law 

(collectively, the “Actions”), and such Designated Claimant has not elected to liquidate their Claim 

through the process outlined in Section 6 above, such Actions shall be stayed (including with 

respect to pending discovery) until the ADR Procedure with respect to such Claim has been

completed. Within five (5) business daysof entry of a final order with respect to the validity and 

amount of such Claim in the ADR Procedure, a motion shall be filed in the applicable forum to

dismiss any corresponding portion ofsuch Action, with prejudice, and to transfer any remaining 

portion of such Action, to the extent not pending or subject to the Debtors’ Title III cases, to the 

Title III Court presiding over the Debtors’ Title III cases. To the extent required, the automatic 

stay, extant pursuant to section 362of the Bankruptcy Code, applicable herein in accordance with

section 301 of PROMESA, shall bedeemed modified solely for the purpose of determining the

validity and amount of a claim pursuant to the ADR Procedure.

d) Report to Court of Status of Claims Referred to ADR Procedure. Within sixty (60) days of filing

the first ADR Notice, and every sixty (60) days thereafter, the Debtors shall file with the Court a

notice (an “ADR Status Notice”) setting forth those claims since the filing of the prior ADR Status

Notice that (a) have been resolved through the Offer Exchange or the Evaluative Mediation Process

(the “Offer Exchange Resolved Claims” and the “Evaluative Mediation Resolved Claims”); (b)

have been resolved through Arbitration (the “Arbitration Resolved Claims”); (c) have been

resolved through litigation before the Commonwealth’s courts (the “Commonwealth Court

Resolved Claims,” and together with the Offer Exchange Resolved Claims, the Evaluative

Mediation Resolved Claims, and the Arbitration Resolved Claims, the “Resolved Claims”); and

(d) are currently in the Offer Exchange process, the Evaluative Mediation process, the Arbitration

process, litigation before the Commonwealth’s courts (or the United States District Court for the

District of Puerto Rico, if the action was removed), or litigation before the Title III Court. The

ADR Status Notice shall be substantially in the format reflected in Exhibit A to the Notice

Regarding Amended Motion for Entry of an Order (A) Authorizing Alternative Dispute Resolution

Procedures, (B) Approving Additional Forms of Notice, and (C) Granting Related Relief [ECF No. 

10698-1]. For the avoidance of doubt, the ADR Status Notice shall include, for each Designated 

Claim identified, (1) a code indicating the claim amount by reference to brackets, (2) a general

characterization of the type of claim, and (3) if the claim isrelating to a pending litigation,the forum

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in which the action is pending and the case number, where applicable.

e) With respect to any Resolved Claims, the Debtors shall file with the Title III Court an informative

motion, attaching the form of Stipulation, to be so ordered by the Title III Court. The Debtors shall 

file such informative motion within two weeks of the resolution of the Claim, or in conjunction 

with the next status report, whichever is later. All Resolved Claims and Arbitration Resolved 

Claims shall be noted on the Claims Registry of the Title III Cases and distributions with respect

thereto shall be made in accordance with the provisions of theCommonwealth plan of adjustment 

or such other plan of adjustment as may be appropriate. To the extent feasible, and to assist the Title

III Court in managing its docket, the Debtorsshall providean update to the Title III Court regarding

any common legal issues shared amongst the UnresolvedClaims, to the extent such common legal

issues exist.

8. Litigation of Unresolved Claims

a) Where there has been no consent, under Section 4.a above, to binding arbitration or litigation

before the Commonwealth’s courts, within one hundred and twenty (120) days of the filing of a

Mediator’s Impasse Notice, the Commonwealth or such other Title III Debtor, as the case may be,

shall initiate litigation against the holder of the Unresolved Claim by the filing of a claim objection,

which may be either an individual or an omnibus objection. Each party shall bear their own costs

with respect to litigation of any Unresolved Claim. The Court will provide notice pursuant to 28

U.S.C. § 636 by which all parties can agree to resolve an Unresolved Claim before a United States

Magistrate Judge (the “Claims Adjudication Judges”). If all parties voluntarily so consent, a

Claims Adjudication Judge may conduct all proceedings and order the entry of a final judgment

with respect to an Unresolved Claim. Such final judgment may then be appealed directly to the

United States Court of Appeals for the First Circuit.

b) The Title III Court may also, in its discretion, refer such Unresolved Claims to Claims

Adjudication Judges for general pre-trial management and preparation of a Report and

Recommendation pursuant to 28 U.S.C. § 636(b). If a claimant has not voluntarily consented to the

resolution of their Unresolved Claim by the Claims Adjudication Judges, the Claims Adjudication 

Judge shall make a Report and Recommendation to the Title III Court. Such Report and 

Recommendation will be reviewed by the Title III Court pursuant to Federal Rule of Civil Procedure

72, and claimants will have an opportunity to object to the Report and Recommendationpursuant to 

28 U.S.C. § 636(b) and Federal Rule of Civil Procedure 72(b). Upon reviewing the Report and 

Recommendation, the Title III Court will enter a final determination, which will be subject to appeal

to the United States Court of Appeals for the First Circuit.

c) No individual who has served as a Mediator with respect to a particular Unresolved Claim may

also serve as a Claim Adjudication Judge with respect to the same Unresolved Claim.

d) Litigation before the Title III Court with respect to any Unresolved Claim shall proceed in

accordance with the Federal Rules of Bankruptcy Procedure, made applicable to this Title III Case

pursuant to PROMESA § 310, the Local Rules for the District of Puerto Rico, and this Court’s

standing and case management orders. In addition to the foregoing, litigation before Claims

Adjudication Judges shall also proceed in accordance with 28 U.S.C. § 636 and Federal Rule of

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Civil Procedure 72.

e) Any order/decision entered by the Claims Adjudication Judges shall not provide for any amounts

already disallowed by the Title III Court, specific performance or any other form of equitable

remedy or any other relief impermissible under PROMESA or such other applicable law. To the

extent a Claim requests such relief, those requests for relief will be determined by the Title III

Court. Nothing in this paragraph shall preclude the Title III Court from separately referring such

requests to Magistrate Judges pursuant to 28 U.S.C. § 636 for general pretrial management and/or

Report and Recommendation.

9. Translation and Interpretation Services

a) The Debtors shall provide certified translation and/or interpretation services in connection with

Evaluative Mediation and/or proceedings before the Title III or District Court, and Magistrate

Judges, as specified in orders of the Court, but shall not be obligated to provide such services in

connection with binding arbitration.

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EXHIBIT 2

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UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF PUERTO RICO

PROMESA

Title III

No. 17-BK-3283-LTS

(Jointly Administered)

ALTERNATIVE DISPUTE RESOLUTION NOTICE

Service Date:

Designated Claimant(s):

Address:

Designated Claim Number(s):

Amount(s) Stated in Proof(s) of Claim:

RESPONSE DEADLINE:

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”, and together with the Commonwealth, COFINA, HTA, ERS, and PREPA, the “Debtors”) (Bankruptcy

Case No. 19-BK-5532-LTS) (LastFour Digits of Federal Tax ID: 3801) (Title III case numbers are listed as 

Bankruptcy Case numbers due to software limitations).

In re:

THE FINANCIAL OVERSIGHT AND

MANAGEMENT BOARD FOR PUERTO RICO,

as representative of

THE COMMONWEALTH OF PUERTO RICO, et al.,

Debtors.1

This Notice only applies to the Designated Claim Number listed above. You should

read the Notice carefully and discuss it with your attorney. If you do not have an

attorney, you may wish to consult one.

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Why am I receiving this notice? You have filed the claim(s) referenced above

(which is referred to in this Notice as the “Designated Claim(s)”) in [Debtor]’s Title III case.

The Debtor believes that the Designated Claim(s) is invalid or overstated in whole or in part, and

is prepared to offer to agree with you to a lower stated claim amount (in other words, to “settle”

the liquidated amount of your Designated Claim(s)) instead of starting proceedings asking the

Court to reduce or eliminate your claim. This Alternative Dispute Resolution Notice includes

the Debtor’s settlement offer to you in Section I below.

Overview of the ADR Process. By this Alternative Dispute Resolution Notice (“ADR

Notice”), the [Debtor] hereby submits the Designated Claim(s) in the [Debtor’s] Title III case to

alternative dispute resolution, pursuant to the procedures (the “ADR Procedures”) established by 

the Order (A) Authorizing Alternative Dispute Resolution Procedures, (B) Approving 

Additional Form of Notice, and (C) Granting Related Relief, as amended by set forth in 

Exhibit 1 to the Order Granting Motion to Amend Alternative Dispute Resolution Procedures,

entered by the United States District Court for the District of Puerto Rico (the “Title III Court”) 

on [DATE]. A copy of the ADR Procedures, which describe all of the methods that may be used 

to liquidate your Designated Claim(s), is enclosed for your reference. Please review the ADR 

Procedures carefully.

A Settlement Offer is included in Section I below. You must respond to the Settlement

Offer by either accepting, rejecting, or providing a counteroffer. If you and the [Debtor] do not

reach an agreement, your claim will be sent to evaluative mediation, where further settlement

efforts will be assisted by a Mediator. See Section [ ] of the ADR Procedures. You must state

whether, if those efforts fail, you agree to proceed with your claim either through binding

arbitration, or, if you qualify, litigation in the Commonwealth courts (as described below).

See Sections [ ] of the ADR Procedures. If you do not choose either of those options, or if all

parties do not agree to your chosen option, your claim will be resolved in this Title III Court

under the procedures described in Section [ ] of the ADR Procedures.

SETTLEMENT OFFER. The [Debtor] has reviewed your Designated Claim(s) and,

pursuant to the ADR Procedures, offers the amount(s) set forth in Section I below as a [general 

unsecured nonpriority/administrative expense] claim in full and final settlement of the liquidated 

amount of your Designated Claim(s) (the “Settlement Offer”). Please note that, if your claim is a 

general unsecured claim, the amount of the Settlement Offer and any amount you may agree 

to may NOT be the amount you will actually receiveunder a confirmed plan of adjustment.

The treatment of your claim will be determined bythe plan of adjustment. It is possible 

that the amount you will be paid under the plan on account of your claim may be less than, 

and may only be a fraction of, the liquidated amount of your claim. Allowed administrative 

expense claims will be paid pursuant to the terms of any confirmed plan of adjustment.

You Must Respond to This Notice. You must return this ADR Notice to Proskauer

If you have any questions, please contact Kroll at (844) 822-9231 (tollfree for U.S. 

and Puerto Rico) or (646) 486-7944 (for international callers), available 10:00

a.m. to 7:00 p.m. (Atlantic Standard Time) (Spanish available).

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Rose LLP, with a copy to Alvarez & Marsal, with a Permitted Response (as defined below)

to the Settlement Offer by no later than the Response Deadline listed above.

In addition, if you are rejecting the Settlement Offer or making a counteroffer, to the

extent that your most recent proof(s) of claim does not (a) state the correct amount of your

Designated Claim(s); (b) expressly identify each and every cause of action and legal theory on

which you base your Designated Claim(s); (c) include current, correct and complete contact

information of your counsel or other representative; or (d) provide all documents on which you

rely in support of your Designated Claim(s), you must provide all such information and

documentation with your Permitted Response to this Notice.

If you do not return this ADR Notice with the requested information and a Permitted

Response to the Settlement Offer to Proskauer Rose, with a copy to Alvarez & Marsal, so that it

is received by the deadline to respond, you will be deemed to have rejected the Settlement Offer

and the liquidation of your Designated Claim(s) will either advance to the evaluative mediation 

phase of the ADR Procedures, as explained in Sections 2(f) and 3 of the ADR Procedures, or 

will be resolved according to the provisions for resolving Unresolved Claims set forth in Section 

[ ] 4 of the ADR Procedures. 

Binding Arbitration or Commonwealth Court Litigation. If you do not accept the

Settlement Offer, you are required to state in Section II below whether you consent to binding

arbitration of your Designated Claim(s) or to having the amount of your Designated Claim

resolved by litigation in the Commonwealth Courts. You cannot consent to both. If you do not

consent to either, your claim will be resolved in this Title III Court.

The Debtor(s) [have/have not] consented to submit your Designated Claim(s) listed

above to binding arbitration. In binding arbitration, the arbitrator (rather than a court) will

decide the liquidated amount of your claim. Please note that if you elect to participate in

binding arbitration, you will be required to pay [$ ], which is 50% of the cost for the

arbitrator’s services, as well as the fees of your own lawyer (if any) and any incidental costs

that you incur.

You are required to indicate in Section II below whether you agree to binding arbitration.

Once you have consented to participate in binding arbitration, your consent to binding

arbitration cannot be withdrawn. In addition, if you have previously consented in writing,

either before or after [Debtor’s] Title III case was filed, to binding arbitration as a means to

resolve your claim(s) against [Debtor], any attempt to opt out of binding arbitration in response

to this Notice shall be ineffective.

If you do not elect to participate in binding arbitration, you may instead elect to have the

liquidated amount of your claim determined by the Commonwealth courts.

Commonwealth Court Litigation

The Debtors [have/have not] consented to have the liquidated amount of your Claim

determined by the Commonwealth courts, subject to the restrictions set forth in the ADR

Procedures. You are required to indicate in Section II below whether you agree to have your

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liquidated claim amount determined by the Commonwealth courts.

Section I: Settlement Offer. [Debtor] offers you an allowed [general unsecured 

nonpriority/administrative expense] claim in the amount of [$ ] against [Debtor] in full 

satisfaction of your Designated Claim(s), to be satisfied in accordance with any plan of

adjustment of debts confirmed and implemented in[Debtor’s] Title III case.

The only permitted responses (“Permitted Responses”) to the Settlement Offer are:

(a) acceptance of the Settlement Offer,

(b) rejection of the Settlement Offer, or

(c) rejection of the Settlement Offer coupled with a counteroffer (a “Counteroffer”).

Information regarding Counteroffers is available in Section [ ] of the ADR Procedures.

Please select your Permitted Response in the box below.

YOU MUST RESPOND TO THE SETTLEMENT OFFER.AND RESPOND TO THE

OTHER APPLICABLE ITEMS IN THE REMAINDER OF THE FORM

RESPONSE TO SETTLEMENT OFFER

 I/we agree to and accept the terms of the Settlement Offer.

(If you indicate that you accept the settlement offer, skip Section II, sign the form at

the bottom, and return it to Proskauer Rose LLP, with a copy to Alvarez and Marsal.

If you are not accepting the Settlement Offer, read each of the following items

carefully and respond as applicable.)

OR

 I/we reject the Settlement Offer.

OR

 I/we reject the Settlement Offer. However, I/we will accept an allowed [general 

unsecured nonpriority/administrative expense] claim against [Debtor] in the amount of

$ in full satisfaction of the Designated Claim(s), to be satisfied in accordance with

any plan of adjustment of debtsconfirmed and implemented in the [Debtor’s] Title III

case.

Section [ ] of the ADR Procedures sets forth the restrictions on counteroffers. Your

counteroffer may not include unknown, unliquidated or similar amounts and may not exceed

the amount or improve the priority set forth in your most recent timely filed or amended

proof of claim. You may not amend your proof of claim solely for the purpose of proposing

a counteroffer of a higher amount or a better priority. If you return this form with a

counteroffer that does not comply with the terms of the ADR Procedures, you will be

deemed to have rejected the Settlement Offer, and the liquidation of your Designated

Claim(s) will advance to evaluative mediation as set forth in Section [ ] of the ADR

Procedures.

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Section II: Binding Arbitration or Commonwealth Court Liquidation.

OR

In addition, if you are rejecting the Settlement Offer or making a counteroffer, to the extent

that your most recent proof(s) of claim does not (a) state the correct amount of your

Designated Claim(s); (b) expressly identify each and every cause of action and legal theory

on which you base your Designated Claim(s); (c) include current, correct and complete

contact information of your counsel or other representative; or (d) provide all documents

on which you rely in support of your Designated Claim(s), you MUST send all such

information and documentation with your Permitted Response to Proskauer Rose, with a

copy to Alvarez & Marsal.

A. CONSENT TO BINDING ARBITRATION

Please indicate below whether you consent to binding arbitration with respect to the

Designated Claim(s):

 I/we CONSENT to Binding Arbitration. I/we acknowledge that my/our consent,

once given, cannot be withdrawn.

Note that if you elect to participate in binding arbitration, you will be required to pay [$ ],

which is 50% of the cost for the arbitrator’s services, as well as the fees of your own lawyer (if

any) and any incidental costs that you incur.

OR

 I/we DO NOT CONSENT to Binding Arbitration.

Note that binding arbitration will only take place if all parties, including [Debtor], agree to

submit the dispute to arbitration.

B. CONSENT TO COMMONWEALTH COURT LIQUIDATION

Please indicate below whether you consent to resolving the amount of your Designated

Claim(s) before the Commonwealth courts with respect to the Designated Claim(s):

 I/we CONSENT to resolving the amount of my/our Designated Claim(s) before the

Commonwealth courts.

OR

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You cannot select both binding arbitration and Commonwealth court litigation.

If you do not select either binding arbitration or Commonwealth court litigation, the

amount of your claim will be resolved in this Title III Court.

RETURN YOUR COMPLETED NOTICE AND ANY SUPPLEMENTAL INFORMATION

IN A COUNTEROFFER TO [ADDRESS] BY [DEADLINE]

[Signature of the Designated

Claimant’s Authorized Representative]

By: 

[Printed Name]

[N.B. – Additional Signature Lines

as Needed.]

[Signature of the Designated

Claimant's Authorized Representative]

By: 

[Printed Name]

 I/we DO NOT CONSENT to resolving the amount of my/our Designated Claim(s)

before the Commonwealth courts.

Note that the litigation will only take place in the Commonwealth’s Courts if all parties,

including [Debtor], consent to litigate the amount of the Designated Claim(s) before the

Commonwealth Courts.

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TRIBUNAL DE DISTRITO DE LOS ESTADOS UNIDOS

PARA EL DISTRITO DE PUERTO RICO

PROMESA

Título III

No. 17-BK-3283-LTS

(Administrados en forma

conjunta)

AVISO DE RESOLUCIÓN ALTERNATIVA DE CONFLICTOS

Fecha de Servicio:

Reclamante(s) designado(s):

Dirección:

Número(s) de reclamo(s) designado(s):

Cantidad(es) indicada(s) en la(s) prueba(s) de reclamo:

FECHA LÍMITE DE RESPUESTA:

1 Los Deudores en estos casos iniciados al amparo del Título III, junto con el número de caso respectivo de cada

Deudor y los últimos cuatro (4) dígitos del número de identificación contributiva federal de cada Deudor, según 

corresponda, son (i) El Estado Libre Asociado de Puerto Rico (el “ Estado Libre Asociado”)(Caso de Quiebras Núm. 

17 BK 3283-LTS) (últimos cuatro dígitos del número de identificación contributiva federal: 3481); (ii) la Corporación 

del Fondo de Interés Apremiante de Puerto Rico (“COFINA”) (Caso de Quiebras Núm. 17 BK 3284-LTS) (últimos 

cuatro dígitos del número de identificación contributiva federal: 8474); (iii) la Autoridad de Carreteras y

Transportación de Puerto Rico (“HTA”) (Caso de Quiebra Núm. 17 BK3567-LTS) (últimos cuatro dígitos del número 

de identificación contributiva federal: 3808); (iv) Sistema de Retiro de los Empleados del Gobierno del Estado Libre 

Asociado de Puerto Rico (“ERS”) (Caso de Quiebra Núm. 17 BK 3566-LTS) (últimos cuatro dígitos del número de

identificación contributiva federal: 9686); y (v) Autoridad de Energía Eléctrica de Puerto Rico (“PREPA”) (Caso de 

Quiebra Núm. 17 BK 4780-LTS) (últimos cuatro dígitos del número de identificación contributiva federal: 3747); y 

(vi) la Autoridad de Edificios Públicos (“PBA”, y junto con el Estado Libre Asociado, COFINA, HTA, ERS, y 

PREPA, los “Deudores”) (Caso de Quiebras Núm. 19 BK 5523-LTS) (los casos al amparo del Título III figuran como 

números el Caso de Quiebra debido a limitaciones de programación)

En el caso:

LA JUNTA DE SUPERVISIÓN Y

ADMINISTRACIÓN FINANCIERA PARA PUERTO

RICO,

como representante del

ESTADO LIBRE ASOCIADO DE PUERTO RICO, y

otros,

Deudores.1

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¿Por qué estoy recibiendo este Aviso? Usted ha presentado su(s) reclamo(s) como se

menciona arriba (el/los “Reclamo(s) Designado(s)”) en el caso del Título III [DEUDOR]. El

Deudor entiende que su(s) Reclamo(s) Designado(s) es/son nulo(s) o está(n) sobreestimado(s)

total o parcialmente, y está preparado para ofrecerse a llegar un acuerdo con usted para una

cantidad menor (en otras palabras, para “transar” el monto de liquidación de su(s) Reclamo(s)

Designado(s) en lugar de iniciar procedimientos solicitándole al Tribunal que reduzca o elimine

su reclamo. Esta Resolución Alternativa de Conflicto incluye la oferta de transacción que le

extiende a usted en la Sección I a continuación.

Descripción General del Procedimiento de RAC. Mediante este Aviso de Resolución

Alternativa de Conflicto (el “Aviso de RAC”), el [Deudor] por la presente presenta el/los

“Reclamo(s) Designado(s) en el caso bajo el Título III para una resolución alternativa de

conflictos, de conformidad con los procedimientos (el “Procedimientos de RAC”) establecidos 

por la Orden (A) Autorizando Procedimientos Alternativos de Resolución de Disputas, (B) 

Autorizando la Reconciliación Administrativo de Reclamos, (c) Aprobando Forma Adicional 

de Aviso, y (D) Otorgando Alivio Relacionado establecidos en el Anexo 1 de la Orden 

Autorizando la Moción para Modificar los Procedimientos Alternativos de Resolución de 

Disputas,emitida por el Tribunal de Distrito de los Estados Unidos para el Distrito de Puerto 

Rico (el “Tribunal del Título III”) el día [FECHA]. Se adjuntauna copia de los Procedimientos 

de RAC para su referencia, donde se describen todos los métodos que se pueden utilizar para 

liquidar su(s) Reclamo(s) Designado(s). Por favor revise los Procedimientos de RAC

cuidadosamente.

Se incluye una Oferta de Transacción en la Sección I más adelante. Usted debe

responder a la Oferta de Transacción ya sea aceptando, rechazando, o haciendo una contraoferta.

Si usted y [Deudor] no llegan a un acuerdo, se enviará su reclamo para una mediación

evaluativa, en la que un Mediador estará asistiendo con las esfuerzos por llegar a una acuerdo

transaccional. Vea la Sección [ ] los Procedimientos de RAC. Si esos esfuerzos fracasan, usted

debe decir si acepta proceder con su reclamo mediante arbitraje vinculante, o, si cualifica,

mediante litigio en los Tribunales del Estado Libre Asociado (según se describe a

continuación). Vea las Secciones [ ] de los Procedimientos de RAC. Si usted no escoge alguna

de esas opciones, o si ninguna de las partes está de acuerdo con la opción que usted escoja, su

Este aviso sólo se aplica a los números de reclamaciones designadas mencionados

anteriormente. Lea el aviso detenidamente y discutirlo con su abogado. Si no tiene

un abogado, puede consultar con uno.

Si tiene alguna pregunta, comuníquese con Kroll al (844) 822-9231 (llamada gratis 

para EE. UU. y Puerto Rico) o (646) 486-7944 (para llamadas internacionales),

disponible de 10:00 a.m. a 7:00 p.m. (Hora estándar del Atlántico) (español

disponible).

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reclamo se resolverá en este Tribunal del Título III bajo los procedimientos descritos en la

Sección [ ] de los Procedimientos de RAC.

Oferta de Transacción. El [Deudor] ha revisado su(s) Reclamo(s) Designado(s) y de

conformidad con los Procedimientos de RAC, ofrece la(s) cantidad(es) establecida(s) en la

Sección I a continuación como una reclamación [general no prioritario sin garantía/gasto 

administrativo] en la transacción completa y final de la liquidación de su(s) Reclamo(s) 

Designado(s) (la “Oferta de Transacción”). Si su reclamo es un reclamo general no prioritario 

sin garantía, tTenga en cuenta que la cantidad de la Oferta de Transacción y cualquier

cantidad que pueda usted aceptar puede que NO sea la cantidad que usted realmente

reciba bajo un plan de ajuste confirmado. El trato que se le de a su reclamo quedará

determinado por el plan de ajuste. Es posible que la cantidad que a usted se le pague bajo

el plan por su reclamo sea menor que, y posiblemente sea solamente una fracción del monto

de liquidación de su reclamo. Reclamos permitidos de gasto administrativo serán pagados 

de acuerdo con las condiciones del plan de ajuste confirmado.

Debe Responder a Este Aviso. Debe devolver este Aviso de RAC a Proskauer Rose

LLP, con copia a Alvarez & Marsal, conjuntamente con una Respuesta Permitida (como se

define a continuación) a la oferta de transacción antes de la Fecha Límite de respuesta

indicada anteriormente.

Además, si usted está rechazando la Transacción o haciendo una contraoferta, en la

medida en que su(s) prueba(s) de reclamo más reciente(s) no: (a) indique(n) la cantidad correcta

de su(s) Reclamo(s) Designado(s); (b) identifique(n) expresamente todas y cada una de las

causas de acción y teoría(s) legal(es) en las que basa su(s) Reclamo(s) Designado(s); (c) incluya

información de contacto actual, correcta y completa de su abogado u otro representante; o (d)

proporcione todos los documentos en los que apoya su(s) Reclamo(s) Designado(s), debe

proporcionar toda esa información y documentación con su Respuesta Permitida a este Aviso.

Si no devuelve este Aviso de RAC con la información solicitada y una Respuesta

Permitida a la Oferta de Transacción a Proskauer Rose, con copia a Alvarez & Marsal, para que

se reciba en o antes de la fecha límite para responder, se entenderá que usted ha rechazado la

Oferta de Transacción y la liquidación de su(s) Reclamo(s) Designado(s) avanzará a la fase de

los Procedimientos de RAC, según se explican en las Secciones 2(f) y 3 de los Procedimientos 

de RAC o conforme a lo dispuesto para la resolución de reclamaciones no resueltas según 

establecido en la Sección [] 4 de los Procedimientos de RAC. 

Arbitraje Vinculante o Litigios en Tribunales del Estado Libre Asociado. Si usted

no acepta la Oferta de Transacción, tiene que indicar en la Sección II a continuación si acepta un

arbitraje vinculante de su(s) Reclamo(s) Designado(s) ó que la cantidad de su Reclamo

Designado quede resuelta mediante litigio ante los Tribunales del Estado Libre Asociado. Usted

no puede aceptar ambas opciones. Si usted no acepta ninguna, su reclamo se resolverá ante el

Tribunal del Título III.

El (los) Deudor(es) [han/ no han] dado su consentimiento para presentar su(s)

Reclamo(s) Designado(s), mencionado(s) anteriormente, a un arbitraje vinculante. En

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arbitraje vinculante, el árbitro (en lugar del Tribunal) decidirá la cantidad de su reclamo a ser

liquidada. Por favor sepa que si usted elige participar en un arbitraje vinculante, tendrá

que pagar [$ ], que es el 50% del costo de los servicios del árbitro, además de los 

honorarios de su propio abogado (si tiene alguno) y cualquier costo incidental que 

ustedpueda incurrir.

Usted tiene que indicar en la Sección II a continuación si usted acepta el arbitraje

vinculante. Una vez usted de su consentimiento para participar en el arbitraje vinculante, no

podrá retirar su consentimiento para el arbitraje vinculante. Además, si había dado su

consentimiento por escrito previamente, ya fuese antes o después de que se radicara el caso bajo

el Título III del [Deudor], para el arbitraje vinculante como un medio para resolver su(s)

reclamo(s) contra [Deudor], resultará inefectivo cualquier intento de optar por no participar en el

arbitraje vinculante en respuesta a este aviso.

Si no elige participar en un arbitraje vinculante, puede elegir entonces que los

Tribunales del Estado Libre Asociado determinen la cantidad de su reclamo que habrá de

liquidarse.

Litigio en los Tribunales del Estado Libre Asociado

Los Deudores [han/no han] dado su consentimiento para que la los Tribunales del Estado

Libre Asociado sean los que determinen la cantidad de su Reclamo a liquidarse, sujeto a las

restricciones establecidas en los Procedimientos de RAC. Usted tiene que indicar en la Sección

II a continuación si acepta que los Tribunales del Estado Libre Asociado sean los que determinen

la cantidad de sus reclamos a liquidarse.

Sección I: Oferta de Transacción. [Deudor] le ofrece [una reclamión general no prioritaria no

garantizada permitida/gasto administrativo] por la cantidad de [$ ] contra [Deudor] para satisfacer 

totalmente su(s) Reclamo(s) Designado(s), lo cual se hará conforme a cualquier plan de ajuste de 

deudas confirmado e implementado en el Caso bajo el Título III de [Deudor].

Las únicas respuestas permitidas (“Respuestas Permitidas”) a la Oferta de Transacción

son:

(a) la aceptación de la Oferta de Transacción,

(b) el rechazo de la Oferta de Transacción, o

(c) El rechazo a la Oferta de Transacción junto con una contraoferta (una

“Contraoferta”).

La información sobre las Contraofertas está disponible en la Sección [ ] de los Procedimientos

de RAC.

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Seleccione su Respuesta Permitida en el encasillado a continuación.

DEBE RESPONDER A LA OFERTA DE TRANSACCIÓN Y A LOS OTROS INCISOS

APLICABLES EN EL RESTO DEL FORMULARIO

RESPUESTA A LA OFERTA DE TRANSACCIÓN

 Yo/nosotros aceptamos y estamos de acuerdo con los términos de la Oferta de

Transacción.

(Si usted indica que usted acepta la Oferta de Transacción salte la Sección II, firme

el formulario al final, y devuélvalo a Proskauer Rose LLP con copia a Álvarez y

Marsal. Si usted no está aceptando la Oferta de Transacción, lea cada una de los

siguientes incisos cuidadosamente y responda según corresponda.)

O

 Yo/nosotros rechazamos la Oferta de Transacción.

O Yo/nosotros rechazamos la Oferta de Transacción. Sin embargo, yo/nosotros

aceptaré/aceptaremos una reclamación [general no garantizada permitida/gasto 

administrativo] contra [Deudor] por la cantidad de $ para satisfacer la totalidad del(de los) 

Reclamo(s) Designado(s), que se hará de acuerdo con cualquier plan de ajuste de deudas 

confirmado e implementado en el Caso bajo el Título III del [Deudor].

La Sección [ ] de los Procedimientos de RAC establecen las restricciones a las

contraofertas. Su contraoferta no puede incluir cantidades desconocidas, sin

liquidar o cantidades similares y no pueden exceder la cantidad, o mejorar la

prioridad establecida en su evidencia de reclamo presentada o enmendada más

recientemente de manera oportuna. Usted no puede enmendar su evidencia de

reclamo con el solo propósito de proponer una contraoferta por una cantidad

mayor o para obtener una mayor prioridad. Si usted devuelve este formulario con

una contraoferta que no cumpla con los términos de los Procedimientos de RAC, se

entenderá que ha rechazado la Oferta de Transacción, y la liquidación de su(s)

Reclamo(s) Designado(s) pasará a la mediación evaluativa conforme se establece

en las Secciones [ ] de los Procedimientos de RAC.

Además, si usted está rechazando la Oferta de Transacción o haciendo una

contraoferta, en la medida en que su(s) prueba(s) de reclamo(s) más reciente(s) no

(b) indiquen la cantidad correcta de su(s) Reclamo(s) Designado(s); (b)

expresamente identifiquen todas y cada una de las causas de acción o teorías

legales en la cuales usted basa su(s) Reclamo(s) Designado(s); (c) incluyan

información de contacto corriente, correcta y completa de su abogado u otro

representante; o (d) provea todos los documentos en los que usted apoya su(s)

Reclamo(s) Designado(s), usted TIENE que enviar toda esta información y

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Sección II: Arbitraje Vinculante o Litigios en Tribunales del Estado Libre Asociado.

O

documentación con su Respuesta Permitida a Proskauer Rose, con copia a Alvarez

& Marsal.

A. CONSENTIMIENTO A UN ARBITRAJE VINCULANTE

Indique a continuación si acepta un arbitraje vinculante con respecto a su(s) Reclamo(s)

Designado(s):

 Yo/nosotros CONSIENTO/CONSENTIMOS a un Arbitraje Vinculante.

Yo/Nosotros reconozco/reconocemos que mi/nuestro consentimiento, una vez dado, no se

puede retirar.

Si usted elige participar en arbitraje vinculante, tendrá que pagar [$ ], que es el 50% del

costo de los servicios del árbitro, además de los honorarios de su abogado (si tiene alguno) y

cualquier costo incidental en el que pueda usted incurrir.

O

 Yo/nosotros NO CONSIENTO/CONSENTIMOS a un Arbitraje Vinculante.

El arbitraje vinculante sólo se llevará a cabo si todas las partes, incluyendo a [Deudor],

aceptan someterse la disputa a arbitraje.

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Usted no puede seleccionar el arbitraje vinculante y el litigio en los Tribunales del

Estado Libre Asociado a la misma vez.

Si usted no selecciona entre el arbitraje vinculante o el litigio en los Tribunales del

Estado Libre Asociado, la cantidad de su reclamo será resuelta en este Tribunal del Titulo

III.

DEVUELVA SU AVISO COMPLETADO Y CUALQUIER INFORMACIÓN

SUPLEMENTARIA EN UNA CONTRAOFERTA A [DIRECCIÓN] PARA [FECHA

LÍMITE].

[Firma del Representate Autorizado

del Reclamante Designado]

Por:

[Nombre en letra de molde]

[Firma del Representate Autorizado

del Reclamante Designado]

B. CONSENTIMIENTO PARA LA LIQUIDACIÓN EN EL TRIBUNAL DEL ESTADO

LIBRE ASOCIADO

Indique a continuación si acepta resolver la cantidad de su(s) Reclamo(s) Designado(s) ante

los Tribunales del Estado Libre Asociado con respecto al (los) Reclamo(s) Designado(s):

 Yo/nosotros CONSIENTO/CONSENTIMOS a que se resuelva la cantidad de

mi/nuestros Reclamo(s) Designado(s) ante los tribunales del Estado Libre Asociado.

O

 Yo/nosotros NO CONSIENTO/CONSENTIMOS a que se resuelva la cantidad de

mi/nuestros Reclamo(s) Designados(s) ante los tribunales del Estado Libre Asociado.

El litigio sólo se llevará a cabo en los Tribunales del Estado Libre Asociado si todas las

partes, incluyendo a [Deudor], dan su consentimiento para litigar la cantidad de su(s)

Reclamo(s) Designado(s) ante los tribunales del Estado Libre Asociado.

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Por:

[Nombre en letra de molde]

Case:17-03283-LTS Doc#:23078 Filed:12/16/22 Entered:12/16/22 10:38:04 Desc: Main

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Case:17-03283-LTS Doc#:23078 Filed:12/16/22 Entered:12/16/22 10:38:04 Desc: Main

Document Page 76 of 76