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. 

———————————————————— 

In re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO,

as representative of

PUERTO RICO ELECTRIC POWER

AUTHORITY (“PREPA”)

Debtor.1

)

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

) 

)

PROMESA

Title III

No. 17 BK 3283-LTS

(Jointly Administered)

PROMESA

Title III

No. 17 BK 4780-LTS

Re: 17-BK-04780-LTS, ECF No. 

3155 

JOINT STATUS REPORT PURSUANT TO

JANUARY 18, 2023 RULING ORDERING FURTHER STATUS REPORT

1 The Debtors in these Title III Cases, along with each Debtor’s respective Title III case number and the last four 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 (Bankruptcy Case No. 17-BK-3284-LTS) (Last Four Digits of Federal Tax ID: 8474); 

(iii) Puerto Rico Highways and Transportation Authority (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 (Bankruptcy Case No. 17-BK-3566-LTS) (Last Four Digits of Federal Tax ID: 9686); (v) Puerto Rico Electric

Power Authority (Bankruptcy Case No. 17-BK-4780-LTS) (Last Four Digits of Federal Tax ID: 3747); and (vi) Puerto 

Rico Public Buildings Authority (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).

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 1 of 18
1

To the Honorable United States District Judge Laura T. Swain: 

The Puerto Rico Electric Power Authority (“PREPA”), by and through the Financial 

Oversight and Management Board for Puerto Rico (the “Oversight Board”), as the Debtor’s Title 

III representative pursuant to section 315(b) of the Puerto Rico Oversight, Management, and 

Economic Stability Act (“PROMESA”), the Puerto Rico Fiscal Agency and Financial Advisory 

Authority (“AAFAF” and, together with PREPA and the Oversight Board, the 

“Government Parties”) and Cobra Acquisitions LLC (“Cobra” and, together with the Government 

Parties, the “Parties”), respectfully submit this joint Status Report pursuant to the Court’s Order 

Setting Deadline for Further Status Report [ECF No. 3155]2 (the “Status Report Order”). The 

Parties respectfully state as follows:

I. Background 

1. On January 18, 2023, the Title III Court issued the Status Report Order, continuing 

the litigation stay on Cobra’s Motion for Allowance and Payment of Administrative Expense 

Claims, dated September 30, 2019 [Case No. 17-3283, ECF No. 8789] (the “Administrative 

Expense Motion”), and directing the Parties to file this Status Report addressing the following 

items: (i) the status of any administrative appeals in connection with the November 2022 and 

December 2022 determination memoranda (each, a “DM”) issued by FEMA regarding the second 

contract between PREPA and Cobra (the “Second Contract”), (ii) the status of the criminal case, 

and (iii) a summary of the outstanding unpaid amounts arising from the first contract between 

PREPA and Cobra (the “First Contract” and, together with the Second Contract, the “Contracts”) 

and the Second Contract and whether the Government Parties dispute Cobra’s entitlement to these 

amounts. See Status Report Order. 

2 Docket numbers refer to Case No. 17-4780 unless otherwise noted.

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 2 of 18
2

2. On May 16, 2023, Cobra filed Cobra Acquisitions LLC’s Motion to Modify Stay 

Order [ECF No. 3507] (the “Stay Modification Motion”), seeking to modify the litigation stay to 

permit motion practice on the allowance of the Approved Unpaid Invoices.

3 The Government 

Parties opposed the Stay Modification Motion [ECF No. 3541] (the “Stay Modification 

Objection”), including on the basis the invoices remained subject to review and validation by 

PREPA at that time. 

3. On June 8, 2023, the Title III Court held a hearing on the Stay Modification Motion. 

At the conclusion of the hearing, the Title III Court requested that Cobra file on notice of 

presentment an order requiring PREPA by June 14, 2023 to report as to the remaining steps for 

PREPA to review and validate the Approved Unpaid Invoices and the timetable on which PREPA 

proposed to complete such review, as well as PREPA’s information as to the Central Office for 

Recovery, Reconstruction and Resilience’s (“COR3”) timeframe to complete their additional 

review. See June 8, 2023 Hr’g Tr. 30:2-6. In addition, the Title III Court stated that it would “leave 

the July 31 reporting deadline in place [for this Status Report], and we’ll see where we go in terms 

of focus on this 99 million [i.e., the Approved Unpaid Invoices] once we have a sense of the 

timetable.” Id. at 30:7-10. 

4. On June 13, 2023, the Title III Court issued the Order Regarding Cobra 

Acquisitions LLC’s Motion to Modify Stay Order [Case No. 17-BK-3283, ECF No. 24547], 

requiring PREPA to provide an update on the status of PREPA’s review and validation of the 

Approved Unpaid Invoices. On June 14, 2023, the Government Parties filed an informative motion 

3

 “Approved Unpaid Invoices” means Cobra’s invoices to PREPA under the Second Contract that FEMA determined 

were eligible for reimbursement with public assistance funding, for which Cobra had not been paid as of the filing of 

the Stay Modification Motion. Specifically, public assistance funding from FEMA in an aggregate amount of 

approximately $210 million was obligated on or about March 27, 2023, of which a substantial portion are the 

Approved Unpaid Invoices. The balance of the funding is in respect of invoices for which Cobra has been paid by 

PREPA already.

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 3 of 18
3

with the information requested by the Title III Court. Informative Motion of the Financial 

Oversight and Management Board for Puerto Rico, Puerto Rico Electric Power Authority, and 

Puerto Rico Fiscal Agency and Financial Advisory Authority Relating to Order Regarding Cobra 

Acquisitions LLC’s Motion to Modify Stay Order [ECF No. 3754] (the “Invoice Status Report”). 

5. On July 10, 2023, Cobra filed the Informative Motion of Cobra Acquisitions LLC’s 

[sic] in Connection with the Order Regarding Cobra Acquisitions LLC’s Motion to Modify Stay 

Order [ECF No. 3834] (the “Informative Motion”), informing the Title III Court that the expected 

timetable for completion of PREPA’s review and submission of the invoices to COR3 had been 

delayed. The Title III Court subsequently issued an order requiring the Government Parties to 

respond to the Informative Motion [ECF No. 3840]. 

6. On July 21, 2023, the Government Parties filed the Joint Response of the Financial 

Oversight and Management Board for Puerto Rico, Puerto Rico Electric Power Authority, and 

Puerto Rico Fiscal Agency and Financial Advisory Authority to the Informative Motion of Cobra 

Acquisitions LLC in Connection With the Order Regarding Cobra Acquisitions LLC’s Motion to 

Modify Stay Order [ECF No. 3857] (the “Informative Motion Response”). The Government 

Parties explained in the Informative Motion Response the delay resulted from circumstances 

learned during the validation process undertaken after the filing of the Invoice Status Report. The 

Government Parties have been diligently attempting to address this issue since the issue came to 

their collective attention. 

II. Status Regarding FEMA Appeals

7. FEMA has issued two DMs on the eligibility analysis of costs claimed under the 

Second Contract. PREPA filed first-level administrative appeals of each of FEMA’s DMs under 

the Second Contract in January and February 2023. The appeals challenge FEMA’s denial of 

approximately $73.7 million invoiced by Cobra under the Second Contract. As required by 

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 4 of 18
4

regulation, COR3, the Puerto Rico government agency that serves as the pass-thru entity for FEMA 

funds, forwarded PREPA’s first-level appeals to FEMA in March and April 2023. The appeals are 

now under FEMA review. The Government Parties have not received any communications or 

contact with FEMA since the appeals were filed.

III. Status Regarding Criminal Case 

8. On May 18, 2022, the District Court presiding over the criminal case against 

Cobra’s former president, Donald Keith Ellison, approved a plea agreement by Mr. Ellison. See 

ECF Nos. 3, 5, U.S. v. Ellison, Case No. 22-cr-00220 (D. P.R.). Pursuant to the plea agreement, 

Mr. Ellison pled guilty to a gratuity charge under 18 U.S.C. § 201. Id. The stipulation of facts 

filed as part of the plea agreement related to a proposal by Cobra to reconstruct the electrical grid 

on the island of Vieques in Puerto Rico. Id. Cobra was not awarded this contract. 

9. At the sentencing hearing on December 13, 2022, the U.S. Government introduced 

no additional evidence. The District Court dismissed the indictment on the same day. See ECF 

No. 31, U.S. v. Ellison, Case No. 22-cr-00220 (D. P.R.).

10. The criminal case, therefore, has been resolved. 

IV. Summary of Outstanding Amounts Under the First and Second Contracts and 

Whether the Government Parties Dispute Cobra’s Entitlement to Those Amounts

A. First Contract

11. Cobra believes it is owed no less than approximately $69 million under the First 

Contract, excluding interest. See Administrative Expense Motion, Ex. A (PREPA Receivable 

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 5 of 18
5

Summary).4 The Government Parties dispute Cobra’s entitlement to any further payment based 

on the First Contract. 

12. The majority of the unpaid amounts under the First Contract relate to tax

reimbursements. Specifically, Exhibit B to the First Contract contains a “tax gross up” or “TGU” 

provision, which provides, “[i]n the event any amounts to be paid to [Cobra] under this Contract 

are subject to any taxes (including withholding) imposed by any governmental authority of Puerto 

Rico in excess of 8.5% and [Cobra] has not obtained an exemption from such taxes, the amount to 

be paid to [Cobra] shall be increased by an amount that, after the payment of such taxes, leaves 

[Cobra] with the amount that [Cobra] would have received if [Cobra] had been exempt from all 

such taxes.” PREPA and Cobra disagree as to the correct amount of TGU and have been 

exchanging information in an attempt to reconcile the discrepancy. Cobra believes it is entitled to 

approximately $62 million in TGU. Cobra has invoiced PREPA more than $77 million in TGU of 

which PREPA has paid nearly $16 million. PREPA’s position is that Cobra’s claimed TGU is 

substantially overstated and does not represent actual taxes paid to the Government of Puerto Rico 

in excess of 8.5%, and that no further TGU is owed to Cobra.

13. The balance of the amounts owed under the First Contract relate to work performed 

in connection with Hurricane Beryl, mobilization and other miscellaneous invoices. The amount 

of these unpaid amounts is approximately $7.5 million. PREPA disputes Cobra’s entitlement to 

these amounts.

4 Cobra reserves its rights to amend, supplement or modify the Administrative Expense Motion, and the amounts for 

which Cobra seeks allowance of an administrative expense claim. Without limiting the generality of the foregoing, 

Cobra invoiced PREPA $46.2 million for municipal and construction excise taxes in February 2023. These amounts 

were not previously invoiced as they were not yet payable by Cobra when Cobra filed the Administrative Expense 

Motion. PREPA disputes any obligation to pay this amount. 

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 6 of 18
6

14. Finally, the First Contract provides for a finance charge of 1% per month on 

payments made after the date due. As of June 2023, Cobra has invoiced PREPA for approximately 

$72.3 million in interest under the First Contract.5 PREPA disputes Cobra’s interest demand and 

calculations. 

B. Second Contract 

15. Cobra believes it is owed no less than approximately $135 million under the Second 

Contract (less the amounts PREPA has recently paid), excluding interest. See Administrative 

Expense Motion, Ex. A (PREPA Receivable Summary).

6

 The Government Parties dispute Cobra’s 

entitlement to portions of the approximately $135 million figure. 

16. Specifically, with respect to the Second Contract, FEMA has issued two DMs for 

the projects formulated to capture costs of the Second Contract. Project Worksheet (PW) 466 (also 

referred to as Grants Manager Project (GMP) 49848) captures costs under the Second Contract 

reimbursed at 100% federal share. PW 11211 (also referred to as GMP 49831) captures costs 

under the Second Contract reimbursed at 90% federal share.7

17. FEMA issued a DM on November 21, 2022 for PW 466 / GMP 49848. In this DM, 

FEMA determined $5,599,775.33 in costs are ineligible for reimbursement because the costs “are 

5 Interest charges under the First Contract are not eligible for reimbursement by FEMA and thus FEMA has not 

reviewed or approved such amounts.

6 As with the First Contract, there are amounts due to Cobra that Cobra did not include in the Administrative Expense 

Motion at the time it was filed, but for which Cobra will seek allowance of when the litigation stay is lifted. These 

include, among others, work performed on a project referred to as Roosevelt Roads (approximately $9.9 million) and 

demobilization expenses (approximately $27.5 million).

7 A summary of all FEMA projects for Cobra-related costs is provided in the chart below:

PW No. GMP No. Contract Date Range of Costs Incurred Federal Cost 

Share

251 49797 First Contract October 19, 2017 to July 20, 2018 100%

466 49848 Second Contract July 21, 2018 to August 16, 2018 100%

11211 49831 Second Contract Aug. 17, 2018 to May 26, 2019 90%

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 7 of 18
7

not supported by the terms of [the Second Contract] and/or cannot be tied to the performance of 

eligible work.” (DM at 8 of 11).8

 PREPA has already paid Cobra $52,018,933.94 for work 

associated with PW 466 / GMP 49848, which is more than the amount FEMA determined eligible 

for reimbursement for the applicable invoices. Thus, FEMA’s decision in the November 2022 DM 

did not result in additional funds to PREPA for Cobra-related costs, or further payments to Cobra. 

Cobra disagrees that FEMA’s decisions are determinative of PREPA’s liability.

18. In addition, FEMA issued a separate DM on December 21, 2022 for 

PW 11211 / GMP 49831. In this DM, FEMA determined $233,683,116.76 in costs to be eligible 

and determined that $68,061,726.22 is ineligible for reimbursement because the costs “are not 

supported by the terms of [the Second Contract] and/or cannot be tied to the performance of 

eligible work.” (DM at 8 of 11).9 

19. In its DM, FEMA determined $233,683,116.76 in costs under 

PW 11211 / GMP 49831 are eligible for reimbursement. FEMA obligated this funding at the 

applicable 90% federal cost share—$210,314,805.09—in March 2023. In April, PREPA submitted 

a request for reimbursement to COR3 for the portion of FEMA’s approved costs that were already 

paid to Cobra—$130,206,424.49. COR3 disbursed FEMA’s 90% share of this amount—

$117,157,073.80—to PREPA on June 22, 2023. The remaining $103,476,692.31 of FEMAapproved costs (which FEMA has obligated at a 90% share—$93,129,023.08) are amounts charged 

by Cobra in the Approved Unpaid Invoices. PREPA was not in a position to request this amount 

from COR3 when FEMA obligated the funds in March 2023, because they remained subject to 

8 Details regarding the reasons for FEMA’s ineligibility determinations are set forth in the Parties’ January 7, 2023 

Joint Status Report, ECF No. 3146 (the “January 2023 Status Report”), at 4. 

9 Details regarding the reasons for FEMA’s ineligibility determinations are set forth in the January 2023 Status Report 

at 5-6. 

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 8 of 18
8

PREPA’s internal review and validation as detailed in the Stay Modification Objection and the 

Informative Motion Response. 

20. Unlike the First Contract, the Second Contract does not include a TGU provision, 

so there are no open issues between the Parties as to PREPA’s liability for Cobra’s taxes under the 

Second Contract.

21. Finally, like the First Contract, PREPA’s liability for and the amount of interest 

Cobra claims is disputed. As of June 2023, Cobra has invoiced PREPA approximately $102.2

million in interest under the Second Contract. As noted above, PREPA disputes Cobra’s interest 

demand and calculations.

V. Status of Invoice Review

22. As expressed in both the Invoice Status Report and the Informative Motion 

Response, PREPA continues to diligently review the Approved Unpaid Invoices, and this process 

is now close to conclusion. As detailed in the Invoice Status Report and the Informative Motion 

Response, most of the Approved Unpaid Invoices are missing the engineer certification required 

by PREPA’s internal review procedures and the terms of the Second Contract. All other steps in 

the review process for all of these invoices have been completed. For those invoices that did have 

the engineer certification, PREPA paid Cobra approximately $10.7 million in June and has since 

recommended for payment approximately $9 million, for a total of approximately $20 million. 

PREPA is currently working on a solution regarding the missing engineer certifications for

approximately $83.4 million in Approved Unpaid Invoices that remain unpaid so valid charges can 

be paid by PREPA and/or submitted to COR3 for payment as soon as possible. Additionally, 

PREPA has identified approximately $1.5 million in charges contained in these invoices it disputes 

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 9 of 18
9

for various reasons. Attached hereto as Exhibit A is a further update on the status of all Approved 

Unpaid Invoices.

VI. Status of Settlement Negotiations

23. As previously reported to the Court, the Oversight Board made an illustrative 

settlement proposal (subject to formal Oversight Board approval) to Cobra on April 3, 2023. Cobra 

declined to respond until receipt of payment on the Approved Unpaid Invoices. The Parties 

recently agreed to enter mediation to attempt to resolve their remaining disputes. The Parties will 

contact the mediation team this week and hope that mediation will begin in the following weeks.

VII. Parties’ Positions

a. Government Parties’ Position

24. Given the intention of the Parties to begin mediation sessions in the coming weeks, 

the Government Parties submit it is inappropriate to commence litigation at this time. Instead, the 

Government Parties request the Title III Court maintain the litigation stay through at least October 

31, 2023 to allow mediation to proceed and hopefully yield a settlement. In addition, continuing 

the stay of litigation would conserve both the Parties’ and the Title III Court’s resources while the 

Oversight Board advances its amended plan of adjustment, and avoid motion practice on issues 

that may be resolved through out-of-court agreements.

25. Moreover, the Oversight Board is currently in the process of negotiating and 

drafting a third amended plan of adjustment for PREPA, for which it intends to pursue confirmation 

as expeditiously as practicable. As the Title III Court has recognized on multiple occasions, 

PREPA is under no obligation to satisfy the Administrative Expense Claim until consummation of 

a plan of adjustment. See, e.g., [ECF No. 2590] at 5 (“PREPA’s ability to fund a reserve or resolve 

[Cobra’s] claim, and issues regarding the appropriate magnitude of the claim, can be addressed in 

the context of confirmation.”); June 29, 2022 Hr’g Tr. at 26:1-4 (“[W]e have the practical situation 

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 10 of 18
10

that PREPA is not, in the Title III context, required to make the payment to your client until there 

is a confirmation proceeding to the extent it’s going to be paid as an administrative claim.”), 41:12-

14 (“[T]he Court also notes that the prejudice being suffered by Cobra isn’t materially different 

from that of others who are awaiting payments of administrative expense claims.”). Additionally, 

as explained above, PREPA intends to pursue payment of undisputed charges in the Approved 

Unpaid Invoices, either from its own funds or federal funds from COR3, as quickly as it can and 

not conditioned on the results of mediation. Thus, Cobra would not be prejudiced in any way by 

maintaining the stay of litigation of the Administrative Expense Motion through October 31, 2023. 

Continuing the stay would also allow for the further development of a complete record, as during 

such time PREPA will work to pursue the outstanding FEMA administrative appeals and any 

further appeals as appropriate. Even if mediation does not result in a settlement of all issues, the 

Government Parties are optimistic that it can, at a minimum, narrow or better define the litigation 

issues requiring Court intervention. 

b. Cobra’s Position 

26. The Government Parties, once again, opt for delay to Cobra’s substantial prejudice. 

Cobra completed its work in March 2019. Cobra submitted, with limited exceptions, all its 

invoices to PREPA by July 2019. Under the express terms of the Contracts, PREPA was required 

to determine whether the invoice adhered to the contract and approve the invoice within 15 

calendar days after receipt. PREPA failed to do so when required, both initially and apparently 

when submitting invoices to FEMA for public assistance funding. Of course, for the 

approximately $130 million in invoices PREPA had already paid Cobra, PREPA was able to timely 

ensure that it had the documentation it apparently requires. Because of PREPA’s failure to approve 

invoices timely and in accordance with its contractual obligations at the time Cobra submitted the 

invoices, Cobra is now being subjected to an indefinite wait for PREPA to develop a “solution” to 

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 11 of 18
11

missing engineer certifications—four years after the work was performed, and when apparently 

PREPA no longer has any personnel with the requisite authority—so that PREPA can submit the 

Approved Unpaid Invoices to COR3 (which, in turn, has its own review process). To be clear, 

FEMA has already reviewed and approved the Approved Unpaid Invoices; whatever additional 

process PREPA believes it must complete defies the reality of the past four years, when Cobra’s 

invoices and costs have been subject to an extraordinary amount of scrutiny by FEMA and other 

third parties. PREPA can and should simply pay Cobra the remaining balance of the Approved 

Unpaid Invoices now without further delay. 

27. Since PREPA stopped paying Cobra in the summer of 2019, and as welldocumented throughout the nearly four years during which this litigation stay has been imposed, 

Cobra has sought repeatedly to engage directly with PREPA, to resolve disputes consensually and 

to litigate matters the parties could not resolve consensually—only to be generally pushed aside

and baselessly maligned. Cobra has, at its own expense, dedicated substantial personnel resources

to help PREPA and incurred significant legal costs to hold PREPA to its contractual obligations 

and ensure Cobra was paid for the work it indisputably performed to PREPA’s benefit.

28. But, in the Government Parties’ conception, it is only their convenience that 

matters, as if, notwithstanding the plain terms of the contracts, PREPA will not bear the substantial 

costs of its delay. Having opted to push off a resolution until now (despite the myriad earlier 

opportunities) or even abide by their contractual obligations to review and approve invoices in a 

timely manner, the Government Parties ask that the Title III Court recognize the inconvenience it 

would be to litigate with Cobra given the dedication of resources to PREPA’s plan of adjustment. 

This purported hardship—and it appears to be the Government Parties’ only remaining rationale 

for maintaining the stay, given the resolution of the criminal case and the effective completion of 

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 12 of 18
12

the FEMA process—is indisputably insufficient. The law requires a balancing of interests, and 

this purported hardship to PREPA surely pales in comparison to the severe and substantial 

prejudice that Cobra has suffered throughout the nearly four years the litigation stay has been in 

place. Furthermore, it is simply incorrect that Cobra would not be prejudiced by continuing the 

stay because PROMESA does not require payment of allowed administrative expenses until 

consummation of a plan of adjustment. The Government Parties, as before, conflate allowance of 

Cobra’s claim with payment of its claim, and pretend that there is no clear benefit to both Cobra 

and PREPA to determine the amount of the allowance in advance of confirmation and otherwise. 

29. Accordingly, Cobra submits that avoiding setting a litigation schedule is precisely 

the wrong tack to take. As time has shown, if PREPA is given an inch, it will take a mile. If the 

Title III Court does not set a timeline toward resolution (and, indeed, even then there is little 

assurance, since PREPA has so far not abided by its own timelines on the Approved Unpaid 

Invoices), the Government Parties’ pattern of behavior is that they will, again and again, find new 

obstacles to stand in the way of prompt payment. Cobra is of course dedicated to conducting 

mediation in good faith and fully expects that the Parties can reach a consensual resolution through 

that process. But resolution is not assured, and Cobra has faced four years of delay that it never 

bargained for. Cobra strongly believes that committing to a litigation schedule now will focus the 

Parties on achieving a mutually beneficial resolution through mediation while simultaneously

ensuring, if such a resolution is not possible for all or a subset of the Parties’ disputes, that the 

Parties can pivot efficiently and without unnecessary delay toward a judicial resolution. If progress 

is being made in mediation, the Parties can seek to adjourn any briefing and hearing dates as 

applicable. 

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 13 of 18
13

30. Accordingly, Cobra respectfully submits that the stay applicable to the 

Administrative Expense Motion be lifted and the Parties be required to submit a litigation schedule 

that may be adjourned so long as mediation is continuing. 

[Remainder of page intentionally left blank]

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 14 of 18
14

New York, New York

July 31, 2023 

Respectfully submitted,

O’NEILL & BORGES LLC

By: /s/ Hermann D. Bauer 

Hermann D. Bauer 

USDC No. 215205 

250 Muñoz Rivera Ave., Suite 800 

San Juan, PR 00918-1813 

Telephone: (787) 764-8181 

Facsimile: (787) 753-8944 

Email: hermann.bauer@oneillborges.com 

PROSKAUER ROSE LLP

By: /s/ Paul V. Possinger 

Martin J. Bienenstock* 

Paul V. Possinger*

Ehud Barak* 

Eleven Times Square New York, NY 10036 

Telephone: (212) 969-3000 

Facsimile: (212) 969-2900 

Email: mbienenstock@proskauer.com 

ppossinger@proskauer.com 

ebarak@proskauer.com

* admitted pro hac vice 

Attorneys for the Financial Oversight and 

Management Board as representative of the 

Puerto Rico Electric Power Authority

DÍAZ & VÁZQUEZ LAW FIRM, P.S.C. 

 

By: /s/ Katiuska Bolaños 

Katiuska Bolaños 

kbolanos@diazvaz.com 

USDC-PR 231812

290 Jesús T. Piñero Ave. 

Oriental Tower, Suite 803 

San Juan, PR 00918 

Tel. (787) 395-7133 

Fax. (787) 497-9664

REICHARD & ESCALERA, LLC

By: /s/ Rafael Escalera Rodríguez 

Rafael Escalera Rodríguez (No. 122609) 

Sylvia M. Arizmendi (No. 210714) 

Carlos R. Rivera-Ortiz (No. 303409) 

REICHARD & ESCALERA, LLC

255 Ponce de León Avenue 

MCS Plaza, 10th Floor 

San Juan, PR 00917-1913 

Telephone: (787) 777-8888 

Email: escalera@reichardescalera.com

arizmendis@reichardescalera.com

riverac@reichardescalera.com

AKIN GUMP STRAUSS HAUER & FELD 

LLP

By: /s/ Scott M. Heimberg 

Scott M. Heimberg (pro hac vice) 

sheimberg@akingump.com 

Allison S. Thornton (pro hac vice) 

athornton@akingump.com 

2001 K Street, N.W. 

Washington, DC 20006 

Tel: (202) 887-4000 

Fax: (202) 887-4288 

and

Ira S. Dizengoff (pro hac vice) 

Philip C. Dublin (pro hac vice) 

Abid Qureshi (pro hac vice) 

idizengoff@akingump.com 

pdublin@akingump.com 

aqureshi@akingump.com 

Akin Gump Strauss Hauer & Feld LLP 

One Bryant Park

New York, New York 10036

Telephone: (212) 872-1000 

Facsimile: (212) 872-1002

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 15 of 18
15

Co-Attorneys for Puerto Rico Electric Power 

Authority 

MARINI PIETRANTONI MUÑIZ LLC

By: /s/ Luis C. Marini-Biaggi 

Luis C. Marini-Biaggi 

USDC No. 222301 

Email: lmarini@mpmlawpr.com

250 Ponce de León Ave., Suite 900 

San Juan, Puerto Rico 00918 

Tel: (787) 705-2171 

Fax: (787) 936-7494 

Attorneys for the Puerto Rico Fiscal 

Agency and Financial Advisory Authority 

O’MELVENY & MYERS LLP

By: /s/ Maria J. DiConza 

John J. Rapisardi* 

Maria J. DiConza*

7 Times Square

New York, NY 10036 

Telephone: (212) 326-2000 

Facsimile: (212) 326-2061 

Email: jrapisardi@omm.com 

mdiconza@omm.com 

-andPeter Friedman* 

1625 Eye Street, NW 

Washington, D.C. 20006 

Tel: (202) 383-5300 

Fax: (202) 383-5414 

pfriedman@omm.com 

-andElizabeth L. McKeen*

610 Newport Center Drive, 17th Floor 

Newport Beach, CA 92660 

Tel: (949) 823-6900 

Fax: (949) 823-6994 

emckeen@omm.com

* admitted pro hac vice 

Attorneys for the Puerto Rico Fiscal

Attorneys for Cobra Acquisitions LLC 

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 16 of 18
16

Agency and Financial Advisory 

Authority and Puerto Rico Electric Power 

Authority

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 17 of 18
Exhibit A 

Approved Unpaid Invoices Review Process Summary 

Case:17-03283-LTS Doc#:24820 Filed:07/31/23 Entered:07/31/23 17:23:09 Desc: Main

Document Page 18 of 18