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 LUIS MANUEL RAMÍREZ-PÉREZ 

AND JOSÉ LUIS RAMÍREZ-PÉREZ [ECF NO. 21680] TO THE FOUR HUNDRED 

EIGHTY-FIRST OMNIBUS OBJECTION (SUBSTANTIVE) OF THE 

COMMONWEALTH OF PUERTO RICO AND THE EMPLOYEES RETIREMENT 

SYSTEM OF THE GOVERNMENT OF THE COMMONWEALTH OF PUERTO RICO 

TO CLAIMS FOR WHICH THE DEBTORS ARE NOT LIABLE

To the Honorable United States District 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” and together with the Commonwealth, COFINA, HTA, and ERS, the 

“Debtors”) (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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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”),2file this reply (the “Reply”) to the response and reservation of rights [ECF No. 

21680] (the “Response”) filed by claimants Luis Manuel Ramírez-Pérez and José Luis RamírezPérez (“Claimants”) to the Four Hundred Eighty-First Omnibus Objection (Substantive) of the 

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

Commonwealth of Puerto Rico to Claims for Which The Debtors Are Not Liable [ECF No. 

21427] (the “Four Hundred Eighty-First Omnibus Objection”). In support of this Reply, the 

Debtors respectfully represent as follows:

1. On June 29, 2018, Claimants filed a proof of claim against the Commonwealth, 

logged by Prime Clerk LLC (now Kroll Restructuring Administration LLC) as Proof of Claim No. 

87279 (the “Claim”), in the amount of $5,000 based on purported liabilities stemming from a 

“transaction agreement,” with the “Authority of Maritime Transportation of Puerto Rico.” Claim 

at 2-3. Claimants later explained in response to an information request that the Claim was based 

on a “settlement of extrajudicial claim against the Maritime Transportation Authority.” Id. at 16.

2. On July 1, 2022, the Debtors filed the Four Hundred Eighty-First Omnibus 

Objection seeking to disallow claims that seek recovery for amounts for which the Debtors are not

liable, as set forth on Exhibit A thereto (collectively, the “Claims to Be Disallowed”).3 As set 

forth in the Four Hundred Eighty-First Omnibus Objection and supporting exhibits thereto, each 

of the Claims to Be Disallowed purports to assert liabilities against the Debtors, but, upon a 

reasonable review of the proofs of claim and the Debtors’ books and records, the Debtors do not 

 

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

3 Capitalized terms used but not defined herein shall have the meanings ascribed to them in 

the Four Hundred Eighty-First Omnibus Objection.

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owe any outstanding liabilities to the applicable claimants. In particular, the Four Hundred 

Eighty-First Omnibus Objection sought to disallow the Claim because it asserted a liability based 

on a litigation against the Puerto Rico Maritime Transportation Authority (“MTA”), not against 

the Commonwealth or any other Title III Debtor. See Four Hundred Eighty-First Omnibus

Objection, Ex. A [ECF No. 21427-1] at 6.

3. Any party who disputed the Four Hundred Eighty-First 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 Eighty-First Omnibus Objection as 

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

Omnibus Objections, 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].

4. On August 1, 2022, Claimants filed the Response. Therein, Claimants assert the 

Claim “involves an extrajudicial settlement agreement between Francisca Pérez Miray (RIP), 

predecessor in interest and deceased mother of the Creditors (her heirs) and the Puerto Rico 

Maritime Transportation Authority (“MTA”).” Response ¶ 2. The Response contends that the 

Oversight Board “has never been able to tell [Claimants’ counsel]—in a definitive way—whether 

the MTA is or is not part of the Commonwealth for purposes of these Title III proceedings.” Id.

¶ 6. In support of that assertion, Claimants rely on a chart, purportedly provided to them by the 

Oversight Board (attached as Exhibit 1 to the Response [ECF No. 21680-1] (the “Chart”)), which sets 

forth “Ankura Consulting Group’s understanding of the Central Government of Puerto Rico's 

(“Central Government”) operations.” Chart at 1. Although Claimants concede the Chart does not 

include the MTA, Claimants contend the Chart does not definitively state MTA is not a Title III 

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Debtor. See Response ¶ 4. The Response concludes by stating that, if the Oversight Board 

“affirmatively represents that the MTA is not a debtor or part of the Commonwealth for the purposes 

of these Title III cases, without any caveats or reservations,” that Claimants “have no objection to 

the disallowance of [the Claim]” and reserve their right to collect directly from MTA. Id. ¶ 7 

(emphasis in original). The Response concedes that “the relevant inquiry is whether the MTA is 

a debtor or considered part of the Commonwealth as a debtor in these Title III cases.” Id. ¶ 4. 

5. MTA’s enabling act, 23 L.P.R.A. § 3202 (the “MTA Enabling Act”), makes clear 

that MTA is a separate and district entity from the Commonwealth, and therefore not a Title III 

Debtor. Specifically, the MTA Enabling Act expressly provides that MTA has a “legal existence 

and personality separate from the Government of the Commonwealth of Puerto Rico, its agencies, 

instrumentalities and political subdivisions.” 23 L.P.R.A. § 3202. Moreover, the MTA Enabling 

Act explicitly states that:

The debts, obligations, contracts, notes, receipts, expenses, 

accounts, funds, pledges and properties of the Authority, its 

officials, agents or employees shall be deemed as belongings of said 

Authority and not as property of the Government of Puerto Rico 

or of any office, bureau, department, instrumentality, agency, or 

public subdivision, municipality, agent, official or employee 

thereof.

MTA Enabling Act (emphasis added).

6. Neither the Claim nor the Response provides a valid basis for asserting liabilities 

against the Commonwealth or any other Title III Debtor in respect of the “extrajudicial settlement 

agreement” purportedly underlying the Claim. To the extent Claimants request the Oversight 

Board to, in essence, grant them permission or otherwise authorize them to take action to collect 

against MTA for the liabilities asserted in the Claim, such a request is improper and falls outside 

of the Oversight Board’s purview.

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WHEREFORE the Commonwealth and ERS respectfully request that the Court grant the Four 

Hundred Eighty-First Omnibus Objection and disallow the Claim, notwithstanding the Response, 

and grant the Debtors such other and further relief as is just. 

Dated: August 10, 2022 Respectfully submitted,

San Juan, Puerto Rico

/s/ Hermann D. Bauer

Hermann D. Bauer

USDC No. 215205

Carla García Benítez

USDC No. 203708

O’NEILL & BORGES LLC

250 Muñoz Rivera Ave., Suite 800

San Juan, PR 00918-1813

Tel: (787) 764-8181

Fax: (787) 753-8944

/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 as representative for the 

Commonwealth of Puerto Rico and the 

Employees Retirement System of the 

Government of the Commonwealth of Puerto 

Rico

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