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) 

This filing relates to the 

Commonwealth and ERS. 

REPLY OF THE COMMONWEALTH OF PUERTO RICO AND THE EMPLOYEES 

RETIREMENT SYSTEM OF THE GOVERNMENT OF THE COMMONWEALTH OF 

PUERTO RICO TO THE RESPONSE FILED BY CLAIMANT JEREMY MORALES 

PAGAN [ECF NO. 21691] TO THE FOUR HUNDRED SEVENTY-FIFTH OMNIBUS 

OBJECTION (NON-SUBSTANTIVE) TO CLAIMS ASSERTING LIABILITIES OWED 

BY ENTITIES THAT ARE NOT TITLE III DEBTORS 

To the Honorable United States District Court Judge Laura Taylor Swain: 

The Commonwealth of Puerto Rico (the “Commonwealth”) and the Employees Retirement 

System of the Government of the Commonwealth of Puerto Rico (“ERS,” and together with the 

Commonwealth, the “Debtors”), by and through the Financial Oversight and Management Board 

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

to Section 315(b) of the Puerto Rico Oversight, Management, and Economic Stability Act

(“PROMESA”),2 file this reply (the “Reply”) to the untitled response [ECF. No. 21691] (the 

“Morales Pagan Response”) filed by claimant Jeremy Morales Pagan (“Morales Pagan”), and in 

support of the Four Hundred Seventy-Fifth Omnibus Objection (Non-Substantive) of the 

Commonwealth of Puerto Rico and the Employees Retirement System of the Government of the 

Commonwealth of Puerto Rico to Claims Asserting Liabilities Owed by Entities that Are not Title 

III Debtors [ECF No. 21426] (the “Four Hundred Seventy-Fifth Omnibus Objection”). The 

Debtors respectfully represent as follows: 

1. On July 1, 2022, the Debtors filed the Four Hundred Seventy-Fifth Omnibus 

Objection, which seeks to disallow, in accordance with the Amended Omnibus Objection 

Procedures, claims that seek recovery for asserted liabilities owed by entities that are not Title III 

Debtors. 

2. Any party who disputed the Four Hundred Seventy-Fifth Omnibus Objection was 

required to file a response by 4:00 p.m. (Atlantic Standard Time) on August 1, 2022 in accordance 

with the Court-approved notice attached to the Four Hundred Seventy-Fifth Omnibus Objection 

as Exhibit C, which was served in English and Spanish on the individual creditors subject to the 

Four Hundred Seventy-Fifth Omnibus Objection, the U.S. Trustee, and the Master Service List (as 

defined in the Sixteenth Amended Notice, Case Management and Administrative Procedures [ECF 

No. 20190-1]). See Certificate of Service [ECF No. 21525]. 

3. Morales Pagan filed a proof of claim against the Commonwealth on June 29, 2018, 

which was logged by Kroll Restructuring Administration LLC as Proof of Claim No. 122217 (the 

2

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

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“Morales Pagan Claim”). The Morales Pagan Claim asserts (1) liabilities arising from the 

litigation captioned Frente Unido de Policías Organizados et al. v. Puerto Rico Police 

Department, No. KAC2007-4170 (the “FUPO Litigation”); (2) allegedly accrued, but unpaid, 

wages and benefits purportedly owed by the Puerto Rico Police Department, and (3) allegedly 

accrued, but unpaid, wages and benefits purportedly owed by the Municipality of Carolina Police 

Department. 

4. The portion of the Morales Pagan Claim asserting the FUPO Litigation was 

objected to pursuant to the Three Hundred Fifty-First Omnibus Objection (Non-Substantive) of the 

Commonwealth of Puerto Rico, Puerto Rico Highways and Transportation Authority, and 

Employees Retirement System of the Government of the Commonwealth of Puerto Rico to Partial 

Duplicate Litigation Claims [ECF No. 17112] (the “Three Hundred Fifty-First Omnibus 

Objection”) as duplicative, in part, of Master Claim No. 161091, which was filed on behalf of all 

plaintiffs in the litigation Frente Unido de Policías Organizados et al. v. Puerto Rico Police 

Department, No. KAC2007-4170. The Three Hundred Fifty-First Omnibus Objection remains 

pending. Further, the portion of the Morales Pagan Claim asserting liabilities purportedly owed 

by the Puerto Rico Police Department (Proof of Claim No. 122217-1) was transferred into the 

Debtors’ Administrative Claims Reconciliation (“ACR”) process and will be resolved consistent 

with the court-approved ACR procedures. 

5. The remaining portion of the Morales Pagan Claim (Proof of Claim No. 122217-2, 

or the “Morales Pagan Claim”) purports to assert liabilities in an unknown amount associated with 

allegedly accrued, but unpaid, wages purportedly owed by the Municipality of Carolina Police 

Department, and is subject to the Four Hundred Seventy-Fifth Omnibus Objection. 

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6. On August 1, 2022, Morales Pagan filed the Morales Pagan Response [ECF No. 

21691]. Therein, Morales Pagan attaches a copy of the Four Hundred Seventy-Fifth Omnibus 

Objection and asserts that: 

Debtors alleges that under the laws of Puerto Rico all benefits 

arising from Municipality were transferred and made part of the 

obligations by the State Police 

The years worked for the municipality constitutes a threshold for the 

years of pension requirements as a whole. It is not separate or 

independent amount. The State Police is responsible for all amounts. 

Response at 1. 

7. However, neither the Municipality of Carolina nor the Municipality of Carolina 

Police Department is a Title III Debtor, and the Morales Pagan Response fails to provide a basis 

for asserting a claim against either the Commonwealth or any of the other Title III Debtors in 

respect of amounts owed by Municipality of Carolina Police Department. Accordingly, the portion 

of the Morales Pagan Claim asserting liabilities purportedly owed by the Municipality of Carolina 

should be disallowed. 

8. Accordingly, because Morales Pagan has not provided a basis for asserting the 

liabilities associated with the Morales Pagan Claim against the Debtors, the Debtors respectfully 

request the Morales Pagan Claim be disallowed in part as set forth herein. 

[Remainder of page is intentionally left blank] 

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Dated: April 11, 2023 

San Juan, Puerto Rico 

Respectfully submitted, 

/s/ Luis F. del Valle-Emmanuelli 

Luis F. del Valle-Emmanuelli

USDC-PR No. 209514

P.O. Box 79897 

Carolina, Puerto Rico 00984-9897 

Tel. 787.647.3503 

Fax. N/A 

dvelawoffices@gmail.com 

Of Counsel for A&S Legal Studio, PSC

434 Ave. Hostos

San Juan, PR 00918

Tel: (787) 751-6764/763-0565

Fax: (787) 763-8260

/s/ Brian S. Rosen

Martin J. Bienenstock (pro hac vice) 

Brian S. Rosen (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 of the 

Commonwealth of Puerto Rico and the 

Employees Retirement System of the 

Government of the Commonwealth of 

Puerto Rico

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