IN THE 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

_______________________________________

In re: 

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOUARD FOR PUERTO RICO, 

as a representative of

PUERTO RICO HIGHWAYS AND 

TRANSPORTATION AUTHORITY, 

Debtor. 

PROMESA 

Title III

No. 3:17-BK-3283-LTS

(Jointly Administered)

PROMESA 

Title III

No. 3: 17-BK-03567 (LTS)

RE: ECF No. 2247

This motion relates only to HTA 

and shall be filed in the lead Case 

No. 17 BK 3283-LTS and Case 

No. 17 BK 3567-LTS.

OPOSITION TO JOINDER OF FINANCIAL GUARANTY INSURANCE COMPANY 

(ECF. NO. 2277) TO NATIONAL PUBLIC FINANCE GUARANTEE CORPORATION’S

RULE 2004 MOTION IN ECF NO. 2247

 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); and (v) Puerto Rico Electric Power Authority (“PREPA”) (Bankruptcy Case No. 17 BK 4780-LTS) (Last 

Four Digits of Federal Tax ID: 3747). (Title III case numbers are listed as Bankruptcy Case numbers due to software 

limitations).

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COMES NOW, the Government Development Bank for Puerto Rico (“GDB”), through a 

special appearance and without submitting itself to the jurisdiction of the Court,

2 through the 

undersigned counsel and hereby states as follows:

1. On January 16, 2018, National Public Guarantee Corporation (“National”) filed

the Motion of National Public Finance Guarantee Corporation for Entry of an Order under 

Bankruptcy Rule 2004 Authorizing Limited Discovery of the Government Development Bank for 

Puerto Rico, and its Notice of Hearing in Docket Nos. 2247 and 2250 (herein, “National 

Motions”), seeking discovery from GDB under Rule 2004 of the Federal Rules of Bankruptcy 

Procedure. Docket Nos. 2247 and 2250. The discovery sought by National only relates to 

documents and communications regarding to the account titled Puerto Rico State Infrastructure 

Bank account, as it relates to the Puerto Rico Highway and Transportation Authority 

Subordinated Transportation Revenue Bonds (Series 1998) (“PR SIB Account - 1998 

Subordinated Transportation Revenue Bonds”). See Docket No. 2247 at Exhibit A. 

2. On January 23, 2018, GDB moved the Court for an extension of time to exhaust 

meet and confer efforts with National and, alternately, to submit its Objection to National 

Motions. Docket No. 2276. On January 24, 2018, the motion was granted in part and GDB was 

ordered to file any objections to the National Motions by today. Docket No. 2285. 

3. On January 23, 2018, Financial Guaranty Insurance Company (“Financial”) filed 

a joinder to the National Motions. Docket No. 2277. The joinder alleges that Financial provides 

financial guaranty insurance covering principal amount of bonds issued by the Commonwealth 

of Puerto Rico and the Puerto Rico Highways and Transportation Authority (“PRHTA”). The 

 2 GDB makes this special appearance solely to seek this extension and to oppose the National Motions (as 

defined below). GDB is not a Title III debtor and is not a party in interest to the captioned proceedings and other 

than as relates to the request directed at it, has no interest in these proceedings.

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joinder concedes that Financial DOES NOT insure the 1998 Subordinated Transportation 

Revenue Bonds, which are the bonds that are allegedly secured by the funds in the PR SIB 

Account - 1998 Subordinated Transportation Revenue Bonds, as to which National claims a right 

to discovery, but contends that Financial “likewise seeks discovery of GDB with respect to the 

PR SIB Trust Fund, and the existence, history and status of any other escrow or trust funds 

securing bonds issued by PRHTA.” See Docket No. 2277 at ¶ 2 (emphasis in the original). 

4. Joinder should be denied. First, Financial has not even attempted to meet and 

confer with GDB with respect to any proposed discovery under Rule 2004 in clear violation of 

Local Bankruptcy Rule 2004-1. Second, Financial admits that is does not have an interest in the 

PR SIB Account - 1998 Subordinated Transportation Revenue Bonds, which is the subject of the 

discovery sought by National in the National Motions. Third, to the extent that Financial now 

seeks additional discovery as to “the existence, history and status of any other escrow or trust 

funds securing bonds issued by PRHTA” through a joinder to National’s Motions, such a request 

is procedurally improper. 

5. Admittedly, Financial has no interest in the discovery sought by National and, its 

now proposed unrelated discovery as to the existence of alleged unspecified escrow or trust fund 

accounts at GDB, is not only unreasonably broad and cumbersome, but completely unrelated to 

the inquiry before the Court. A Rule 2004 inquiry is premised on a showing of good cause for 

the proposed examination. See, e.g. In re AOG Entm’t, Inc, 558 B.R. 98, 108 (Bankr. S.D.N.Y. 

2016); In re Youk-See, 450 B.R. 312, 319-20 (Bankr. D. Mass 2011). Financial has not shown 

any cause— much less a good one — for the examination sought by National. Joinder should be 

denied without further consideration. 

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6. Lastly, today, National and GDB have moved the Court to hold the National 

Motions in abeyance as a result of an agreement reached between the parties with respect to the 

discovery sought by National. Docket No. 2306. The parties have likewise requested that the 

National Motions be excluded from the matters to be discussed in the February 7, 2018 omnibus 

hearing. Therefore, to the extent that the Court does not outright deny Financial’s request for 

joinder, the request for joinder should be held in abeyance as well. 

WHEREFORE, GDB respectfully request this Honorable Court to deny the Joinder 

sought by Financial. 

IT IS HEREBY CERTIFIED that a true copy of this document has been filed with the 

Clerk of the Court electronically using the CM/ECF system, which automatically serves 

notification of the filing to parties in interest.

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Dated: January 30, 2018

San Juan, Puerto Rico

LAW OFFICES OF GISELLE LÓPEZ SOLER

PMB 257

Rd. 19 1353

Guaynabo, Puerto Rico 00966

Tel. (787) 667-0941 

Email gls@lopezsolerlaw.com

/s/ GISELLE LÓPEZ SOLER

Giselle López Soler

USDC No. 224010 

Attorneys for the Government Development Bank for Puerto Rico

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