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UNITED STATES DISTRICT COURT 

DISTRICT OF PUERTO RICO 

 

In re: 

The Financial Oversight and 

Management Board for Puerto 

Rico, 

as representative of 

The Commonwealth of Puerto 

Rico, The Employees Retirement 

System of the Government of 

the Commonwealth of Puerto 

Rico, and the Puerto Rico 

Public Buildings Authority, 

Debtors 

 

PROMESA Title III 

No. 17 BK 3283 (LTS) 

(Jointly Administered) 

RESPONSE TO INFORMATIVE MOTION AT DOCKET 19787 

To the Honorable Court: 

Comes now PFZ Properties, Inc. (hereinafter, PFZ), a creditor 

of the Commonwealth of Puerto Rico (hereinafter, the Debtor or the 

Commonwealth), by and through its undersigned counsel, and 

respectfully alleges and prays: 

1. On January 10th, 2022, the Court had issued an ORDER 

REGARDING PLAN MODIFICATIONS NECESSARY TO THE ENTRY OF AN ORDER 

CONFIRMING PLAN OF ADJUSTMENT FOR THE COMMONWEALTH OF PUERTO Rico, 

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THE EMPLOYEES RETIREMENT SYSTEM OF THE GOVERNMENT OF THE 

COMMONWEALTH OF PUERTO Rico, AND THE PUERTO Rico PUBLIC BUILDINGS 

AUTHORITY (Docket 19721). On January 14th, 2022, Debtor filed the 

“MODIFIED EIGHTH AMENDED TITLE III JOINT PLAN OF ADJUSTMENT OF THE 

COMMONWEALTH OF PUERTO RICO, ET AL.” (“The Plan”) at docket 19784, 

and an “INFORMATIVE MOTION OF FINANCIAL OVERSIGHT AND MANAGEMENT 

BOARD REGARDING NONSUBSTANTIVE MODIFICATIONS TO DRAFT FINDINGS OF 

FACT AND CONCLUSIONS OF LAW AND CONFIRMATION ORDER” at docket 

19787. 

2. The Plan, the Proposed Findings of Fact and Conclusions 

of Law (“FFCL”), and the proposed Confirmation Order should have 

included modifications by Debtor to its previous plan and proposed 

FFCL and Confirmation Order, as ordered by the Court. PFZ believes 

that, regarding Eminent Domain/ Inverse Condemnation claims and its 

treatment, the proposed Plan and FFCL still fall short of the 

Court’s ordered modifications. 

3. Regarding the Plan, PFZ has stated (in its objection at 

docket 19597), that the language proposed by Debtor in the Proposed 

Plan, as to the treatment of Takings claims, is confusing and lends 

itself to unnecessary litigation. Specifically, as to the 

definition of Eminent Domain Proceedings, and to avoid any 

confusion, the whole Puerto Rico Eminent Domain Act of March 12th, 

1903, as amended (32 L.P.R.A. sec. 2901 et seq.) must be considered 

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and referenced. That should be changed in paragraph 1.213 of the 

Plan. If the FOMB does not modify the Plan to these effects, then 

the FFCL (in its paragraph 66, docket 19787, at page 53 of 284) and 

the Order confirming should clarify it, in order to avoid 

unnecessary litigation in the future. 

4. The last part of paragraph 76 of the Proposed Order 

Confirming the Plan includes language (also mentioned in paragraph 

58.1 of the Plan) with certain proviso in case the FOMB 

successfully appeals the Confirming Order. PFZ considers such 

language inappropriate for both documents. On its January 10th, 

2022, Order, the Court has stated that “Overruled objections and 

the Oversight Board's positions as to the proper scope of 

preemption and the proper treatment of Eminent Domain/Inverse 

Condemnation Claims are preserved for appeal.” That makes the 

proviso improvident. Should an appeal be successful, the Court 

will have to comply with whatever mandate comes from the appellate 

courts. 

5. In paragraph 66 of the proposed FFCL, the FOMB includes 

extensive mentions of the Fifth Modified Eighth Amended Plan 

(Docket 19568). Said Plan was modified by the Sixth Modified 

Eighth Amended Plan (Docket 19784) as ordered by the Court. Such 

modification should eliminate whatever argument or authority was 

mentioned in the previous version. As in the proviso mentioned 

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before, it is also improvident as the Court has preserved the 

FOMB’s position for appeal. 

WHEREFORE, PFZ respectfully requests that this Honorable Court 

take notice of the above, order the FOMB to further modify the Plan 

in accordance with PFZ’s comments in this motion, and modify the 

proposed FFCL and Confirmation Order accordingly. 

CERTIFICATE OF SERVICE 

I hereby certify that on this 18th day of January 2022, I 

electronically filed the foregoing motion with the Clerk of the 

Court using the EM/ECF system, which will send a notification to 

all attorneys of record. 

RESPECTFULLY SUBMITTED. 

In San Juan, Puerto Rico, this 18th day of January 2022. 

/s/ DAVID CARRION BARALT /s/ RUSSELL A. DEL TORO 

USDC PR 207214 USDC PR 121302 

Attorney for PFZ Properties Attorney for PFZ Properties 

P.O. Box 364463 Cond. Condado Princess 

San Juan, P.R. 00936-4463 #2 Calle Washington 304 

Tel. (787) 758-5050 San Juan, Puerto Rico 00907 

E-mail: davidcarrionb@aol.com Telephone (787) 529-6502 

 E-mail: rdeltoro@dtslaw.com 

 russell.deltoro.sosa@gmail.com

 

/s/ JOSE ÁNGEL REY 

USDC PR 118103 

Attorneys for PFZ Properties 

P.O. Box 10127 

San Juan, P.R. 00908-1127 

Tel. (787) 396-2600 

E-mail: joseangelrey46@gmail.com

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