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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)

In re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO,

as representative of

PUERTO RICO ELECTRIC POWER

AUTHORITY, 

Debtors. 

PROMESA

Title III

No. 17 BK 4780-LTS

MEDIATION TEAM’S SEVENTH NOTICE AND REPORT

To the Honorable United States District Judge Laura Taylor Swain:

 

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 The Debtors in these Title III Cases, along with each Debtor’s respective Title III case number and the last 

four (4) digits of each Debtor’s federal tax identification number, as applicable, are the (i) Commonwealth of Puerto 

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

Puerto Rico Sales Tax Financing Corporation (“COFINA”) (Bankruptcy Case No. 17-BK-3284-LTS) (Last Four 

Digits of Federal Tax ID: 8474); (iii) Puerto Rico Highways and Transportation Authority (“HTA”) (Bankruptcy 

Case No. 17-BK-3567-LTS) (Last Four Digits of Federal Tax ID: 3808); (iv) Employees Retirement System of the 

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

Digits of Federal Tax ID: 9686); (v) Puerto Rico Electric Power Authority (“PREPA”) (Bankruptcy Case No. 17-

BK-4780-LTS) (Last Four Digits of Federal Tax ID: 3747); and (vi) Puerto Rico Public Buildings Authority (“PBA”) 

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

listed as Bankruptcy Case numbers due to software limitations).

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

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

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

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

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

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

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

Order”).

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

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

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

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

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

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

 

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

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

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

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

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

26–28, 2023.

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

Order.

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

“Mediation Team” shall refer to the Hon. Shelley C. Chapman (ret.) and the Hon. Brendan Linehan Shannon. 4 Case No. 17-3283, Docket No. 23675; Case No. 17-4780, Docket No. 3304.

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

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

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

Intervenor-defendants’ Cross-motion for Summary Judgment (the “Lien Challenge Order”),5

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

consensually resolve outstanding disputes regarding the Plan.

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

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

Order Concerning Mediation Team’s Fourth Notice and Report, dated April 24, 2023 (the 

“April 24 Order”),6 the Court extended the Termination Date through and including July 28, 

2023. The April 24 Order also directed the Mediation Team to file monthly status reports, 

beginning on May 3, 2023, concerning “whether there has been genuine engagement in the 

Mediation process, including the number of completed scheduled mediation session that 

occurred during the preceding month and how many are at that point scheduled for the current 

month.”7

PLEASE TAKE FURTHER NOTICE that, following an urgent status conference held 

on May 8, 2023, the Court entered its Order Memorializing Certain Rulings Made at the May 8, 

2023 Status Conference on May 9, 2023 (the “May 9 Order”).8 The May 9 Order, inter alia, 

directed the principal Mediation Parties to “meet and confer promptly with the Mediation Team 

to establish a future mediation schedule for the benefit of all parties.”9

 The May 9 Order also 

 5 Adv. Pro. No. 19-00391, Docket No. 147. 6 Case No. 17-3283, Docket No. 24061; Case No. 17-4780, Docket No. 3404. 7 April 24 Order, ¶ 4. 8 Case No. 17-4780, Docket No. 3477. 9 May 9 Order, ¶ 1.

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directed the Mediation Team to file a schedule for future mediation sessions between the 

Mediation Team and the principal Mediation Parties by May 16, 2023. 

STATEMENT OF MEDIATION TEAM

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

status report in accordance with paragraph 4 of the April 24 Order. 

2. In-person mediation sessions were conducted by the Mediation Team on May 22 

and 23, 2023. The following Mediation Parties participated in those sessions (i) the Oversight 

Board, (ii) the Ad Hoc Group, (iii) Assured, (iv) Syncora, and (v) AAFAF. While discussions 

between and among certain of such parties continued thereafter, it appears that such discussions 

are now at a standstill. It is unclear to the Mediation Team when (or whether) discussions will 

resume. 

3. As of the filing of this Seventh Notice and Report, subsequent sessions with 

these Mediation Parties and/or sessions with additional Mediation Parties have not been 

scheduled. 

4. The Mediation Team is available to answer any questions the Court may have. 

Dated: June 13, 2023 /s/ Shelley C. Chapman 

SHELLEY C. CHAPMAN

Willkie Farr & Gallagher LLP

 /s/ Brendan L. Shannon 

BRENDAN L. SHANNON

United States Bankruptcy Judge

 

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