UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF PUERTO RICO 

 

In re 

) 

) 

PROMESA 

Title III 

) 

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO, 

) 

) 

) 

) 

No. 17 BK 3283-LTS 

(Jointly Administered) 

As a representative of ) 

) 

THE COMMONWEALTH OF PUERTO RICO

et al., 

Debtors.1

) 

) 

) 

) 

) 

Re: Dkt. No. 23292, 23061, 22847, 23035 

WITHDRAWAL OF REQUEST FOR ORDER COMPELLING 

REPAYMENT OF TAX WITHHOLDINGS 

By his counsel, the Fee Examiner appointed in these proceedings files this Withdrawal as 

a supplement to the Second Supplemental Declaration of Katherine Stadler in Support of Tenth 

Interim and Consolidated Semiannual Application of the Fee Examiner and Godfrey & Kahn, 

S.C. [Dkt. No. 23292] (“Second Supplemental Stadler Declaration”). The Fee Examiner 

further states that: 

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); and, (v) Puerto Rico Electric Power Authority (“PREPA”) (Bankruptcy Case 

No. 17 BK 4780-LTS) (Last Four Digits of Federal Tax ID: 3747) Puerto Rico Public Buildings Authority (“PBA”) 

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#:23326 Filed:01/25/23 Entered:01/25/23 11:36:13 Desc: Main

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1. On November 11, 2022, the Fee Examiner filed the Tenth Interim and 

Consolidated Semiannual Application of the Fee Examiner and Godfrey & Kahn, S.C., Counsel 

to the Fee Examiner, for Allowance of Compensation for Services Rendered and Reimbursement 

of Expenses for the Period from April 1, 2022 Through September 30, 2022 [Dkt. No. 22847] 

(the “Tenth Semiannual Fee Application”) requesting $893,779.30 in fees and $103.90 in 

expenses incurred for the period April 1, 2022 through September 30, 2022, and $116,526.30 in 

previously withheld taxes. 

2. On December 8, 2022, the Court issued the Order Concerning Tenth Interim and 

Consolidated Semiannual Application of the Fee Examiner and Godfrey & Kahn, S.C. [Dkt. No. 

23026], ordering the Fee Examiner to clarify the basis for the tax refund portion of the Tenth 

Semiannual Fee Application. 

3. On December 9, 2022, counsel to the Fee Examiner filed the Supplemental 

Declaration of Katherine Stadler in Support of Tenth Interim and Consolidated Semiannual 

Application of the Fee Examiner and Godfrey & Kahn, S.C. [Dkt. No. 23035] (the 

“Supplemental Declaration”) further outlining the basis of the tax refund portion of the Tenth 

Semiannual Fee Application. 

4. On December 13, the Court issued the Order Concerning Responses to the Tenth 

Interim and Consolidated Semiannual Application of the Fee Examiner and Godfrey& Kahn, 

S.C. [Dkt. No. 23052], ordering responses to the Tenth Semiannual Fee Application and the 

Supplemental Declaration no later than 5:00 p.m. (Atlantic Standard Time) on December 13, 

2022. 

5. Also on December 13, 2022, the Fee Examiner filed the Stipulation to Adjourn 

the Discrete Matter of Repayment of the Tax Withholdings in Connection with Their Tenth 

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Interim and Consolidated Semiannual Application for Allowance of Compensation for Services 

Rendered and Reimbursement of Expenses for the Period from April 1, 2022 Through September 

2022 [Dkt. No. 22847] Set for Hearing on December 14-15, 2022, Omnibus Hearing [sic] [Dkt. 

No. 23059] to allow Hacienda to evaluate requested refund of tax withholding and to allow the 

parties to seek a consensual resolution. 

6. Finally, on December 13, 2022, the Court entered the Order Allowing Tenth 

Interim and Consolidated Semiannual Application of the Fee Examiner and Godfrey & Kahn, 

S.C. But Adjourning Only the Tax Withholding Issue [Dkt. No. 23061]. 

7. Subsequently, through counsel for AAFAF, Hacienda has informed the Fee 

Examiner that the taxes had been mistakenly withheld. Hacienda issued a full refund of the 

mistakenly withheld taxes on December 14, 2022. Godfrey & Kahn, S.C. now holds those funds 

in trust. 

8. In light of the above, the Fee Examiner withdraws the request that the Court order 

a refund of withheld taxes. The adjourned portion of the Tenth Semiannual Interim Fee 

Application may be removed from the February 1, 2023 omnibus hearing agenda and the refund 

need no longer be held in trust. 

Dated this 24th day of January, 2023. 

WE HEREBY CERTIFY that on this date, we electronically filed the foregoing 

document with the Clerk of the Court using the CM/ECF system that will send notification of 

such filing to all attorneys of record registered in the use of the CM/ECF system. 

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EDGE Legal, LLC 

 s/ Eyck O. Lugo 

Eyck O. Lugo 

252 Ponce de León Avenue 

Citibank Tower, 12th Floor 

San Juan, PR 00918 

Telephone: (787) 522-2000 

Facsimile: (787) 522-2010 

Puerto Rico Counsel for Fee Examiner 

GODFREY & KAHN, S.C. 

One East Main Street, Suite 500 

Madison, WI 53703 

Telephone: (608) 257-3911 

Facsimile: (608) 257-0609 

Katherine Stadler (Pro Hac Vice) 

Counsel for the Fee Examiner 

Case:17-03283-LTS Doc#:23326 Filed:01/25/23 Entered:01/25/23 11:36:13 Desc: Main

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