Exhibit D

April 19, 2023 Oversight Board Letter to Cobra

Case:17-03283-LTS Doc#:24219-4 Filed:05/16/23 Entered:05/16/23 18:54:03 Desc:

Exhibit D April 19 2023 Oversight Board Letter Page 1 of 3
Proskauer Rose LLP 3724 N Leavitt St. Chicago IL 60618 

 

Beijing | Boca Raton | Boston | Chicago | Hong Kong | London | Los Angeles | New Orleans | New York | Paris | São Paulo | Washington, DC

April 19, 2023 

By Email 

Abid Qureshi 

Akin Gump Strauss Hauer & Feld LLP 

One Bryant Park 

Bank of America Tower 

New York, NY 10036 

aqureshi@akingump.com 

Re: PREPA/Cobra 

Dear Abid: 

As you are aware, Proskauer Rose LLP represents the Financial Oversight and Management 

Board for Puerto Rico (the “Oversight Board”), the sole representative for the Puerto Rico 

Electric Power Authority (“PREPA”) in its case pursuant to Title III of PROMESA. This letter 

responds to your letter via email dated April 7, 2023. 

At the outset, we must correct inaccuracies contained in your letter. You state that 

$99,190,635.28 is “currently available” to PREPA and state “[t]here is no reason that these 

amounts should not be paid immediately.” This is incorrect. As we have previously explained, 

such funds, while obligated by FEMA, are currently being held in the SmartLink account to 

which the Central Office for Reconstruction, Recovery and Resiliency (“COR3”) (not PREPA) 

has access, and cannot be disbursed by COR3 until PREPA submits a request for reimbursement 

(RFR) and COR3 performs an independent validation process to determine whether to approve 

the disbursement. PREPA has been working diligently to complete its internal processes so that 

it can expediently submit its RFR in compliance with its own policies and procedures, at which 

point COR3’s validation process, which is outside of PREPA’s control, will commence. PREPA 

has always worked and continues to work in good faith to obtain access to FEMA funding to pay 

Cobra, despite the delay and complication of this process caused by the felony indictment of 

Cobra’s former CEO. 

Further, it is disappointing that you have taken the position that payment of amounts that PREPA 

cannot access without COR3’s approval is a precondition to settlement discussions. Since at 

least June of last year, you have requested that Proskauer provide updates on PREPA delivering 

a settlement proposal to Cobra. We have now delivered a reasonable proposal, but Cobra has 

now refused to respond on the false suggestion PREPA is delaying or misusing FEMA funds. 

Importantly, our proposal provides for the immediate payment of any of the $99,190,635.28 

amount approved by FEMA when received from COR3 plus the approximately $11 million in 

matching funds—precisely what you are demanding in your letter. 

Paul V. Possinger 

Partner 

d +1.312.962.3570 

f +1.312.962.3551 

ppossinger@proskauer.com 

www.proskauer.com 

Case:17-03283-LTS Doc#:24219-4 Filed:05/16/23 Entered:05/16/23 18:54:03 Desc:

Exhibit D April 19 2023 Oversight Board Letter Page 2 of 3
April 19, 2023 

Page 2 

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Otherwise, PREPA has raised legitimate disputes with several large line items in Cobra’s 

summary spreadsheet and our settlement proposal reasonably reflects these disputes. 

Furthermore, COR3’s validation and disbursement process will not be impacted, delayed, or 

expedited by settlement. In light of the above, conditioning discussions on payment of FEMA 

funding is counterproductive and we therefore urge Cobra to respond to our settlement proposal. 

We stand ready to further discuss the settlement proposal and how otherwise we can move 

resolution forward. 

Sincerely, 

/s/ ___Paul V. Possinger___________ 

Paul V. Possinger 

Cc: Robert Mujica 

 Jaime El Koury 

 Paula Gonzlez 

Ehud Barak 

Case:17-03283-LTS Doc#:24219-4 Filed:05/16/23 Entered:05/16/23 18:54:03 Desc:

Exhibit D April 19 2023 Oversight Board Letter Page 3 of 3