UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF PUERTO RICO 

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 : 

In re: : 

 : 

THE FINANCIAL OVERSIGHT AND : PROMESA 

MANAGEMENT BOARD FOR PUERTO RICO, : Title III 

 : 

 as representative of : Case No. 17-BK-3283 (LTS) 

 : 

THE COMMONWEALTH OF PUERTO RICO, et al., : 

: 

(Jointly Administered) 

 : 

Debtors.1

 : 

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 : 

In re: : 

 : 

THE FINANCIAL OVERSIGHT AND : PROMESA 

MANAGEMENT BOARD FOR PUERTO RICO, : Title III 

 : 

 as representative of : Case No. 17-BK-4780 (LTS) 

 : 

PUERTO RICO ELECTRIC POWER AUTHOIRTY, : 

: 

Debtor. : 

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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); (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-5233 (LTS)) (Last Four Digits of Federal Tax ID: 3801) 

(Title III case numbers are listed as Bankruptcy Case numbers due to software limitations). 

Case:17-03283-LTS Doc#:23132 Filed:12/21/22 Entered:12/21/22 16:24:36 Desc: Main

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RESPONSE OF OFFICIAL COMMITTEE OF UNSECURED CREDITORS TO 

URGENT MOTION OF PUERTO RICO ELECTRIC POWER AUTHORITY FOR 

ORDER (I) SCHEDULING A HEARING TO CONSIDER ADEQUACY OF 

INFORMATION CONTAINED IN DISCLOSURE STATEMENT, (II) ESTABLISHING 

DEADLINE FOR FILING OBJECTIONS TO DISCLOSURE STATEMENT AND 

REPLIES THERETO, (III) APPROVING FORM AND MANNER OF NOTICE 

THEREOF, (IV) ESTABLISHING DOCUMENT DEPOSITORY PROCEDURES IN 

CONNECTION THEREWITH, AND (V) GRANTING RELATED RELIEF 

To the Honorable United States District Judge Laura Taylor Swain: 

The Official Committee of Unsecured Creditors (the “Committee”)2 respectfully submits 

this response (the “Response”) to the Urgent Motion of Puerto Rico Electric Power Authority for 

Order (I) Scheduling a Hearing to Consider the Adequacy of Information Contained in the 

Disclosure Statement, (II) Establishing the Deadline for Filing Objections to the Disclosure 

Statement and Replies Thereto, (III) Approving Form and Manner of Notice Thereof, (IV) 

Establishing Document Depository Procedures in Connection Therewith, and (IV) Granting 

Related Relief [Docket No. 23098] (the “Urgent Motion”).3 In support of this Response, the 

Committee states as follows:

RESPONSE 

1. The Committee files this Objection to raise two concerns regarding the Urgent 

Motion. First, the Committee has no objection to the proposed briefing and hearing schedule for 

approval of the Disclosure Statement, provided that the Oversight Board timely files (no later 

than 35 days prior to the Disclosure Statement objection deadline) a complete copy of the 

Disclosure Statement4 with all exhibits and schedules, including the fully executed settlement 

 

2

 The Committee is the official committee of unsecured creditors for all Title III Debtors, other than PBA and 

COFINA. 

3

 Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Urgent Motion.

4

 The Disclosure Statement filed on December 16, 2022, did not include several exhibits, including the 

liquidation analysis and the load forecast and illustrative cash flow for new bonds. Nor did the Disclosure 

Statement or the Plan provide any information regarding the terms of the settlement with National Public 

Finance Guaranty Corp. 

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agreement with National Public Finance Guarantee Corp., the load forecast and illustrative cash 

flow for new bonds, and the liquidation analysis.5 Only after a complete Disclosure Statement 

has been filed will parties in interest have the ability to evaluate the adequacy of information 

contained therein. Similarly, the Committee (and, indeed, all parties in interest) should have at 

least 35 days to analyze the information in the Depository before having to prepare objections to 

the approval of PREPA’s disclosure statement. Accordingly, and assuming the Court approves a 

February 3, 2023 objection deadline,6 the Committee requests that a complete Disclosure 

Statement be filed, and the Depository be populated, on or before December 30, 2022. 

2. Second, it should be made clear that approval of the Depository Procedures does 

not excuse the Oversight Board from responding to discovery requests. In fact, when the 

Oversight Board sought approval of similar procedures in connection with confirmation of the 

Commonwealth plan of adjustment, the Oversight Board made clear that “[t]he establishment of 

the Disclosure Statement Depository does not preclude parties from seeking discovery, if 

warranted. To the extent the Oversight Board provides materials in connection with requested 

discovery, such materials will also be included in the Depository.”7 The Committee requests that 

a similar clarification be added to the order approving the Depository Procedures. 

 

5

 As the Court is well aware, the Bankruptcy Rules require that at least 28 days’ notice of the deadline for filing 

objections to the approval of a disclosure statement. See Bankruptcy Rule 2002(b). The Committee is thus 

requesting only a modest 7-day extension of that time period. 

6

 In its December 19, 2022 order on the scheduling of the Urgent Motion, the Court proposed a February 3, 2023 

disclosure statement objection deadline in the event that it grants the Urgent Motion. 

7

 Omnibus Reply of the Financial Oversight and Management Board for Puerto Rico in Support of Debtors’ Joint 

Motion for an Order (I) Scheduling Hearing on Consider the Adequacy of Information contained in the 

Disclosure Statement, (II) Establishing the Deadline for Filing Objections to the Disclosure Statement and 

Replies thereto, (III) Approving Form of Notice Thereof, (IV) Establishing Document Depository Procedures in 

Connection Therewith, and (V) Granting Related Relief [Docket No 16507], Ex. C at 8. 

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WHEREFORE, the Committee respectfully requests that the Court deny the Urgent 

Motion unless the relief requested therein is modified in accordance with this Response. 

Dated: December 21, 2022 By: /s/ Luc A. Despins . 

PAUL HASTINGS LLP 

Luc A. Despins, Esq. (Pro Hac Vice) 

Nicholas A. Bassett, Esq. (Pro Hac Vice) 

G. Alexander Bongartz, Esq. (Pro Hac Vice) 

200 Park Avenue 

New York, New York 10166 

Telephone: (212) 318-6000 

lucdespins@paulhastings.com 

nicholasbassett@paulhastings.com 

alexbongartz@paulhastings.com 

Counsel to the Official Committee of Unsecured 

Creditors 

By: /s/ Juan J. Casillas Ayala . 

CASILLAS, SANTIAGO & TORRES LLC 

Juan J. Casillas Ayala, Esq. (USDC - PR 218312) 

Israel Fernández Rodríguez, Esq. (USDC - PR 225004) 

Juan C. Nieves González, Esq. (USDC - PR 231707) 

Cristina B. Fernández Niggemann, Esq. (USDC - PR 

306008) 

PO Box 195075 

San Juan, Puerto Rico 00919-5075 

Telephone: (787) 523-3434 Fax: (787) 523-3433 

jcasillas@cstlawpr.com 

ifernandez@cstlawpr.com 

jnieves@cstlawpr.com 

cfernandez@cstlawpr.com 

Local Counsel to the Official Committee of Unsecured 

Creditors

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