230530 PROCEDURES ORD RE 502 HEARING VERSION MAY 30, 2023 1

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF PUERTO RICO

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-BK3283-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).

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

Case No. 17-BK-3283-LTS

(Jointly Administered)

In re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO, 

as a representative of

PUERTO RICO ELECTRIC POWER AUTHORITY,

Debtor.

PROMESA Title III

Case No. 17-BK-4780-LTS

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230530 PROCEDURES ORD RE 502 HEARING VERSION MAY 30, 2023 2

ORDER REGARDING PROCEDURES FOR THE JUNE 6-8, 2023 CLAIM ESTIMATION HEARING

The Court will receive evidence and hear argument in connection with the Order 

Regarding Claim Estimation Discovery and Briefing (Docket Entry No. 168 in Adv. Proc. 

No. 19-00391, the “Hearing”) beginning on June 6, 2023, at 9:30 a.m. (Atlantic Standard 

Time). The Hearing will resume at 9:30 a.m. (Atlantic Standard Time) on June 7, 2023, and 

on June 8, 2023 (following the conclusion of the omnibus hearing scheduled for that day). The 

THE FINANCIAL OVERSIGHT AND MANAGEMENT 

BOARD FOR PUERTO RICO, 

as representative of

PUERTO RICO ELECTRIC POWER AUTHORITY,

Plaintiff/Counterclaim-Defendant,

PUERTO RICO FISCAL AGENCY AND FINANCIAL 

ADVISORY AUTHORITY, THE OFFICIAL 

COMMITTEE OF UNSECURED CREDITORS OF ALL 

TITLE III DEBTORS, UNION DE TRABAJADORES 

DE LA INDUSTRIA ELECTRICA Y RIEGO INC., 

AND SISTEMA DE RETIRO DE LOS EMPLEADOS 

DE LA AUTORIDAD DE ENERGIA ELECTRICA,

Intervenor-Plaintiffs,

v.

U.S. BANK NATIONAL ASSOCIATION, AS 

TRUSTEE,

Defendant/Counterclaim-Plaintiff,

THE AD HOC GROUP OF PREPA BONDHOLDERS, 

ASSURED GUARANTY CORP., ASSURED 

GUARANTY MUNICIPAL CORP., NATIONAL 

PUBLIC FINANCE GUARANTEE CORPORATION, 

AND SYNCORA GUARANTEE, INC.,

Intervenor-Defendants/Counterclaim-Plaintiffs.

Adv. Proc. No. 19-00391-LTS

PROMESA Title III

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230530 PROCEDURES ORD RE 502 HEARING VERSION MAY 30, 2023 3

Court will conduct the hearing in Courtroom 17C of the Daniel Patrick Moynihan Courthouse, 

500 Pearl Street, New York, NY 10007 (the “New York Courtroom”), and by video 

teleconference in a courtroom to be designated in the United States District Court for the District 

of Puerto Rico, Clemente Ruiz Nazario US Courthouse, 150 Carlos Chardón Street, Federal 

Building, San Juan, Puerto Rico 00918-1767 (the “San Juan Courtroom”). The Hearing shall be 

governed by the following procedures. 

Registration for In-Person Attendance and Listen-In Facilities for Attorneys, Members of 

the Public and Press

1. In-Person Participation of Counsel. Judge Swain will be present in the 

New York Courtroom. All attorneys who are scheduled to participate in the Hearing are 

expected to appear in person (either in the San Juan Courtroom or the New York 

Courtroom). Counsel who are not scheduled to present argument or examine witnesses have 

the following options to access the Hearing: (i) observe in person in the New York Courtroom;

or (ii) observe a video feed of the Hearing in person in the San Juan Courtroom. Counsel who 

have entered their appearance in the Title III proceedings and intend to participate in the 

Hearing in person (in the San Juan Courtroom or the New York Courtroom) must file an 

informative motion, as set forth in paragraph 7 below. Witnesses providing testimony, counsel 

proffering them, and counsel intending to examine them are expected to appear in person in the 

New York Courtroom, as set forth in paragraph 6 below. Informative motions are due no later 

than June 2, 2023, at 5:00 p.m. (Atlantic Standard Time). 

2. Listen-Only Public Access to the Hearing. Members of the public, 

press, and attorneys may listen to but not participate in the Hearing by dialing (888) 363-4749, 

and, when prompted, entering the access code (7214978) and security code (7533) for listen-only 

access. This telephonic access line for the press and the general public will be in listen-only 

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230530 PROCEDURES ORD RE 502 HEARING VERSION MAY 30, 2023 4

mode at all times. Recording and retransmission of the proceedings by any means 

are prohibited.

3. Live Observation or Video Feed of the Hearing. Counsel and members 

of the public and press who wish to view but not participate in the Hearing may do so by 

appearing in person at the San Juan Courtroom or the New York Courtroom. 

4. Press Room. A live video feed of the proceedings will be available for 

viewing in the press room in the San Juan courthouse. Members of the press should contact 

presscredentials@prd.uscourts.gov (San Juan) regarding viewing facilities and space availability. 

Members of the press may also view the proceedings in the New York Courtroom or dial into the 

listen-only line. 

5. Hearing Structure and the Agenda. The Hearing will proceed as 

follows:

June 6, 2023 

Legal Argument

Burden of Proof and Applicable Legal Standards in a Claim Estimation 

Proceeding

20 minutes

Temporal Scope of Equitable Remedy Access to Net Revenues for Purposes of 

Estimation of Unsecured Net Revenue Claim

40 minutes

Applicable Law/Statute of Limitations 30 minutes

Valuation Concepts: Discounting to Present Value, the Distinction (if any) 

between “Claim Amount” and “Claim Value”

30 minutes

Scope of Operational Expenses to be taken into Account in Determining Net 

Revenues

45 minutes

Blackrock’s 2016 Relending Bonds 20 minutes

Evidentiary Hearing Opening Statements (Limited in Scope to the Issues 

Identified in paragraph 6(c) below)

60 minutes

June 7, 2023

Evidentiary Hearing 

Cross-Examination and Redirect

• David Plastino 90 minutes

• Maureen M. Chakraborty, Ph.D. 90 minutes

• Susan Tierney, Ph.D. 60 minutes

• John S. Young, Jr. 60 minutes

Evidentiary Hearing Closing Statements (Limited in Scope to the Issues 1 hour 15 

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230530 PROCEDURES ORD RE 502 HEARING VERSION MAY 30, 2023 5

Identified in paragraph 6(c) below) minutes

June 8, 2023

(following the Omnibus Hearing)

Closing Argument 3 Hours

6. Witness Testimony. The court expects that all witnesses be available for in 

person cross-examination at the New York Courthouse during the Hearing. Rule 43(a) of the 

Federal Rules of Civil Procedure, made applicable by Rule 9017 of the Federal Rules of 

Bankruptcy Procedure, provides that for “good cause in compelling circumstances” a witness 

may be permitted to testify by contemporaneous transmission from a location other than the 

courtroom. Any motions to allow a witness to provide remote testimony shall be due no later 

than June 1, 2023, at 5:00 p.m. (Atlantic Standard Time). 

a. The original proponent of a witness will be responsible for (a) arranging 

in-person participation at the Hearing, (b) providing a certified interpreter if the witness requires 

translation services, and (c) confirming witness attendance by emailing 

SwainDPRCorresp@nysd.uscourts.gov by 3:00 p.m. (Atlantic Standard Time) on June 5, 

2023. 

b. The Court will review all declarations that have been submitted in support 

of or opposition to the estimation of the Unsecured Net Revenue Claim in advance of the 

Hearing. The deadline for all Parties to file witness declarations to be used at the Hearing is 

June 1, 2023. All such declarations are deemed submitted as direct testimony.

c. Scope of Cross-Examination. Cross-examination of the witnesses will 

be limited to the below issues:

1. Addressing the Rate of Increase Formula applied by the expert.

2. Addressing the basis, role and sensitivity of load factor assumptions in expert’s 

claim computations.

3. Addressing the Surplus Revenue Calculation applied by the expert.

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230530 PROCEDURES ORD RE 502 HEARING VERSION MAY 30, 2023 6

4. Addressing how a statute of limitations, if applied, would change the assumptions 

underlying the computations in the expert report. 

5. How would a claim adjustment for future risks change the assumptions 

underlying the computations in the expert report?

6. If an Additional Rate could be charged to customers to determine the Rate of 

Increase Formula, how and to what extent would that change the assumptions 

underlying the computations in the expert report?

7. Any additional issues raised by the Court at the Hearing.

Debtors’ counsel shall email a proposed agenda to the Court, including final proposed time 

allocations and identifying counsel intending to present legal argument of examine a witness, by 

June 2, 2023, at 12:00 p.m. (Atlantic Standard Time). 

Party Informative Motion, Exhibit List Procedures, and Witness Testimony

7. Party Informative Motion. Counsel for each Party that wishes to 

participate in the Hearing must complete the attached Party Appearance Sheet, Witness Cover 

Sheet, and Exhibit Cover Sheet, annexed hereto as Exhibit A, Exhibit B, and Exhibit C. Each 

sheet must be attached as an exhibit to a Party’s Pretrial Informative Motion. In accordance with 

paragraph 1, a Party must file an informative motion by June 2, 2023, at 5:00 p.m. (Atlantic 

Standard Time), identifying (a) the Party for which they intend to appear, (b) the name(s) and 

email address(es) of the attorney(s) who will appear, and (c) if the Party wishes to cross-examine 

any declarant. 

8. Party Appearance Cover Sheet (Exhibit A). Counsel must use the Party 

Appearance Cover Sheet to identify all counsel who intend to appear in connection with the 

Hearing. Whether participating in the Hearing, counsel’s name must be listed on the Party 

Appearance Cover Sheet. 

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230530 PROCEDURES ORD RE 502 HEARING VERSION MAY 30, 2023 7

9. Exhibits Cover Sheet (Exhibit B). Counsel who have already filed 

exhibits in connection with the section 502 Hearing and wish to reference those exhibits during 

(i) the legal argument, or (ii) in connection with the evidentiary hearing, must complete the 

Exhibit Cover Sheet. Counsel are not required to refile their exhibits. The Exhibit Cover 

Sheet should list the docket entry numbers of those exhibits that have already been filed in 

connection with the claim estimation briefing. The Exhibit Cover Sheet is divided into two 

sections (a) a list of exhibits whose admissibility into evidence for purposes of the Hearing is 

agreed, and (b) a list of exhibits whose admissibility into evidence is not agreed. Thus, all 

parties must meet and confer prior to filing their Exhibit Cover Sheets. 

10. Demonstratives or Visual Aids. To the extent that a Party intends to rely 

on demonstratives or visual aids at the Hearing and wishes those visual aids to be electronically 

displayed at the Hearing, the party shall file a separate informative motion with the word 

“Demonstrative” in the title no later than 12:00 p.m. (Atlantic Standard Time) on June 3,

2023. The item must be attached to the informative motion as a separate, text searchable 

document. Counsel who intend to display demonstratives or visual aids will be required to bring 

a personal computer with internet capability to the courtroom on the date of the hearing. The 

Court will provide further instructions regarding certain technical requirements in the New York 

Courtroom or San Juan Courtroom to display the demonstrative or visual aid. 

11. Witness Cover Sheet (Exhibit C). Each party who intends to crossexamine any of the witnesses or reserve the right to redirect a witness at the Hearing, must file a 

Witness Cover Sheet. 

12. Electronic Binder Submission. Parties must meet and confer in advance 

of the Hearing to use their best efforts to agree on the admissibility of the proposed exhibits into 

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230530 PROCEDURES ORD RE 502 HEARING VERSION MAY 30, 2023 8

evidence. By no later than June 2, 2023, at 5:00 p.m. (Atlantic Standard Time), the Parties 

shall, through the Oversight Board’s counsel, provide to the New York courthouse (a) a list of 

exhibits whose admissibility into evidence for purposes of the Hearing is agreed, (b) a list of 

exhibits whose admissibility into evidence is not agreed, and (c) hard copies of all witness direct 

testimony declarations and expert reports.

13. Electronic Device Policy in New York. Counsel with New York bar 

credentials are permitted to bring one cellular telephone into the New York courthouse in 

accordance with the Fifth Amended Standing Order M10-468.2 Counsel seeking to bring 

additional electronic devices into the New York Courtroom for the Hearing must complete the 

Electronic Device General Purpose Form available on the Court’s website at 

https://www.nysd.uscourts.gov/forms/fillable-form-electronic-devices-general-purpose and 

submit the completed form to the following address: swaindprcorresp@nysd.uscourts.gov by 

June 2, 2023, at 12:00 p.m. (Atlantic Standard Time). Such requests must be compliant with

S.D.N.Y. Standing Order M10‐468. The Court directs counsel’s attention to the technical and 

device usage restrictions detailed in the Fifth Amended Standing Order. Devices may not be 

used for communications purposes in the courtroom and no photography, recording or 

transmission of the proceedings is permitted.

14. Electronic Device Policy in San Juan. Counsel with Puerto Rico bar 

credentials are permitted to bring electronic devices into the San Juan courthouse. Counsel 

authorized to appear Pro Hac Vice in the Title III proceedings shall present (i) a paper or hard 

copy of the order granting Pro Hac Vice admission, and (ii) current government-issued photo 

2 The Fifth Amended Standing Order is available at 

https://nysd.uscourts.gov/sites/default/files/2022-

04/20mc316%205th%20amd%20standing%20order.pdf.

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230530 PROCEDURES ORD RE 502 HEARING VERSION MAY 30, 2023 9

identification.3 Devices may not be used for communications purposes in the courtroom and no

photography, recording or transmission of the proceedings is permitted.

SO ORDERED.

Dated: May 30, 2023

 /s/ Laura Taylor Swain

LAURA TAYLOR SWAIN

United States District Judge

3 The electronic devices policy for the United States District Court for the District of 

Puerto Rico is available at https://promesa.prd.uscourts.gov/electronic-devices-policies. 

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