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

Case No. 17-3283-LTS

Court Filing Relates Only to 

PREPA

In re:

The Financial Oversight and Management Board for 

Puerto Rico, 

as representative of

The Puerto Rico Electric Power Authority,

Debtor.

PROMESA

Title III

Case No. 17-4780-LTS

(Jointly Administered)

URGENT MOTION TO FILE SUPPLEMENTAL OBJECTION TO

DISCLOSURE STATEMENT FOR FIRST AMENDED TITLE III 

PLAN OF ADJUSTMENT OF THE PUERTO RICO ELECTRIC POWER AUTHORITY

The Ad Hoc Group of PREPA Bondholders (the “Ad Hoc Group”) hereby respectfully 

submits this urgent motion (the “Urgent Motion”) that it, and other parties in interest, be granted 

leave to file supplemental objections to the new Disclosure Statement for First Amended Title III 

Plan of Adjustment of the Puerto Rico Electric Power Authority filed by the Financial Oversight 

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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and Management Board for Puerto Rico (the “Oversight Board”) on February 9, 2023 [Case No. 

17-4780-LTS, ECF No. 3201] (the “Amended Disclosure Statement”).2 The Oversight Board 

consents to this motion, as does the Official Committee of Unsecured Creditors (the “Committee”), 

U.S. Bank National Association as Trustee (the “Trustee”), Assured Guaranty Corp. and Assured 

Guaranty Municipal Corp. (together, “Assured”), and Syncora Guarantee Inc. (“Syncora”).

JURISDICTION AND VENUE

1. The United States District Court for the District of Puerto Rico has subject matter 

jurisdiction pursuant to PROMESA § 306(a). Venue is appropriate in this District pursuant to 

PROMESA § 307(a).

RELIEF REQUESTED

2. The Ad Hoc Group respectfully request that the Court grant it and other parties in 

interest leave to file supplemental objections to the Amended Disclosure Statement on or before 

3:00 p.m. AST on Friday, February 17, 2023.

BASIS FOR RELIEF REQUESTED

3. On February 9, 2021, the Oversight Board filed a First Amended Title III Plan of 

Adjustment of the Puerto Rico Electric Power Authority, accompanied by the Amended Disclosure 

Statement. The new Plan and Amended Disclosure Statement reflect the terms of the Oversight 

Board’s settlement with National Public Finance Guarantee Corp. (“National”), add two new 

classes of claims, and incorporate a number of new or revised exhibits regarding PREPA’s 

proposed Legacy Charge and other components of its Plan.

4. At last week’s omnibus hearing, counsel for the Oversight Board previewed that an 

amended Plan and revised Disclosure Statement were likely imminent. The Oversight Board stated 

2 Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the 

Amended Disclosure Statement.

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that it “would consent and consents now to parties filing supplemental objections.” 2/1/23 Hr’g 

Tr. 7:3-4. The Oversight Board has since then re-confirmed its consent to this Urgent Motion. See

FOMB Urgent Mot., ECF No. 3202 (Feb. 10, 2022) at ¶ 7 (“The Oversight Board has agreed that 

it will not object to the Ad Hoc Group or the Committee’s motion for a supplemental Disclosure 

Statement objection, to be filed no later than February 17, 2023, by 3:00pm (AST).”).

5. The Ad Hoc Group, and other interested parties, should be afforded sufficient 

opportunity to review the Amended Disclosure Statement and prepare and file supplemental 

objections it. The Amended Disclosure Statement, and the new Plan provisions it describes, raises 

significant new issues. The Oversight Board now proposes to settle National’s bond claims for 

more than 83 cents on the dollar, well above the 50-cent settlement offer the Oversight Board is 

currently offering other bondholders through its solicitation process (and even well above the 51-

56 cent recovery that the Oversight Board has proposed for Non-Settling Bondholders who win 

the lien-and-recourse litigation on all grounds). What is more, the Oversight Board appears to 

have accommodated its settlement with National by adjusting the total distributable value that it

asserts to be all PREPA can afford to pay creditors, but (once again) without any explanation of

how and why PREPA can now afford a different sum that what the Oversight Board has previously 

asserted.

6. The Ad Hoc Group anticipates using its supplemental objection to explain these 

and other new grounds for this Court to deny approval of the Amended Disclosure Statement. The 

timing of this supplemental objection, ahead of the hearing scheduled on February 28, was entirely 

in the Oversight Board’s control. It announced its settlement in principle with National on

December 16, 2022, nearly two months ago. FOMB Info. Mot., ECF No. 3115. It finalized that 

settlement on January 31, 2023. See National PSA (Ex. N to Amended Disclosure Statement). 

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National’s parent company publicly announced that the settlement two days later. See MBIA Inc., 

Current Report (Form 8-K) (Feb. 2, 2023)). And yet it took nine days, until February 9, for the 

Oversight Board to disclose the National Settlement’s terms and its effect on the Plan and 

Disclosure Statement.

7. The Oversight Board consents to the filing of supplemental objections to the 

Amended Disclosure Statement no later than 3:00 p.m. AST on February 17, 2023.

CERTIFICATION

7. Pursuant to Local Rule 9013-1 and paragraph I.H of the Case Management 

Procedures, the Ad Hoc Group certifies that (a) it has carefully examined the matter and concluded 

that there is a true need for an urgent hearing; (b) the urgency was not created through a lack of 

due diligence; (c) that it made a bona fide effort to resolve the matter without a hearing; (d) that it

made reasonable, good faith communications in an effort to resolve or narrow the issues being 

brought to the Court; (e) that it conferred with counsel for the Oversight Board, the Committee, 

the Trustee, Assured, and Syncora, all of which consent to this motion; and (f) that they 

communicated with those parties in a reasonable, good-faith manner with respect to the relief 

sought by this motion.

NOTICE

8. Notice of the motion and of the proposed relief requested herein has been provided

to counsel to the Oversight Board, the Committee, Assured, and Syncora. 

NO PRIOR REQUEST

9. No prior request for the relief requested herein has been made by the Ad Hoc Group

to this or any other court. 

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WHEREFORE, the Ad Hoc Group respectfully requests that this Court enter an order 

substantially in the form attached hereto as Exhibit A granting the relief requested herein and 

granting such other relief as this Court deems just and proper.

We hereby certify that, on this same date, we electronically filed the foregoing with the 

clerk of the Court using the CM/ECF system, which will notify the attorneys of record.

Dated: San Juan, Puerto Rico

February 10, 2023

TORO COLÓN MULLET P.S.C.

/s/ Manuel Fernández-Bared

Manuel Fernández-Bared

USDC-PR No. 204,204

P.O. Box 195383

San Juan, PR 00919-5383

Tel.: (787) 751-8999

Fax: (787) 763-7760

E-mail: mfb@tcm.law

/s/ Linette Figueroa-Torres

Linette Figueroa-Torres

USDC-PR No. 227,104

E-mail: lft@tcm.law

/s/ Nayda Perez-Roman

Nayda Perez-Roman

USDC–PR No. 300,208

E-mail: nperez@tcm.law

Counsel for the Ad Hoc Group of PREPA 

Bondholders

KRAMER LEVIN NAFTALIS & 

FRANKEL LLP

/s/ Amy Caton

Amy Caton*

Thomas Moers Mayer*

Alice J. Byowitz*

1177 Avenue of the Americas

New York, New York 10036

Tel.: (212) 715-9100

Fax: (212) 715-8000

Email: acaton@kramerlevin.com

tmayer@kramerlevin.com

abyowitz@kramerlevin.com

Gary A. Orseck*

Matthew M. Madden*

2000 K Street NW, 4th Floor

Washington, DC 20006

Tel: (202) 775-4500

Fax: (202) 775-4510

Email: gorseck@kramerlevin.com

mmadden@kramerlevin.com

*Admitted Pro Hac Vice

Counsel for the Ad Hoc Group of PREPA 

Bondholders

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