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-3566 (LTS) 

 : 

THE EMPLOYEES RETIREMENT SYSTEM OF THE 

GOVERNMENT OF THE COMMONWEALTH OF 

PUERTO RICO, 

: This filing relates only to Debtor 

ERS and shall be filed in the lead 

Case No. 17-BK-3283 (LTS) and 

Case No. 17-BK-3566 (LTS) 

: 

: 

 : 

Debtor. : 

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1

 The Debtors in these title III cases, along with each Debtor’s respective title III case number listed as a 

bankruptcy case number due to software limitations 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) 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), (iii) Puerto Rico Highways and Transportation Authority (“HTA”) (Bankruptcy Case 

No. 17-BK-3567 (LTS)) (Last Four Digits of Federal Tax ID: 3808), (iv) Puerto Rico Sales Tax Financing 

Corporation (“COFINA”) (Bankruptcy Case No. 17-BK-3284 (LTS)) (Last Four Digits of Federal Tax ID: 

8474); and (v) Puerto Rico Electric Power Authority (“PREPA”) (Bankruptcy Case No. 17-BK-4780) (Last 

Four Digits of Federal Tax ID: 3747). 

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 JOINDER OF OFFICIAL COMMITTEE OF UNSECURED CREDITORS 

TO DEBTOR’S AND RETIREE COMMITTEE’S OBJECTIONS TO MOTION 

OF CERTAIN SECURED CREDITORS OF EMPLOYEES RETIREMENT 

SYSTEM OF GOVERNMENT OF COMMONWEALTH OF PUERTO RICO 

FOR RELIEF FROM AUTOMATIC STAY 

To the Honorable United States District Court Judge Laura Taylor Swain: 

The Official Committee of Unsecured Creditors of all Title III Debtors (other than 

COFINA) (the “Committee”) hereby submits this joinder (the “Joinder”) to (a) the Debtor’s 

Opposition to Motion of Certain Secured Claimholders of Employees Retirement System of 

Government of Commonwealth of Puerto Rico for Relief from Automatic Stay, dated July 10, 

2018 [Docket No. 292 in Case No. 17-3566 (LTS)] (the “ERS Objection”) and (b) the Objection 

of the Official Committee of Retired Employees of the Commonwealth of Puerto Rico to the ERS 

Bondholders’ Motion for Relief from the Automatic Stay, dated July 10, 2018 [Docket No. 293 in 

Case No. 17-3566 (LTS)] (the “Retiree Committee Objection”),2 and respectfully states as 

follows:

1. The Committee believes that the Motion of Certain Secured Creditors of the 

Employees Retirement System of the Government of the Commonwealth of Puerto Rico for Relief 

from the Automatic Stay, dated July 3, 2018 [Docket No. 3418 in Case No. 17-3283 (LTS)] (the 

“Stay Relief Motion”) should be denied. In order to avoid burdening the court with 

unnecessarily duplicative submissions, and in an effort to minimize the incurrence of legal 

expenses, the Committee hereby joins in the following arguments made by the Oversight Board 

and the Retiree Committee in their respective objections. 

2. In regard to the ERS Objection, the Committee joins in the Oversight Board’s 

arguments that (i) relief from the automatic stay is inappropriate because the Movants have not 

 

2

 Capitalized terms used but note defined herein have the meanings set forth in the ERS Objection or the Retirees 

Objection, as applicable. 

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established that they hold a perfected security interest, (ii) the automatic stay should remain in 

effect because the Movants have not met their burden of going forward, including on the issue of 

the cause of any diminution in the value of any collateral, and (iii) if the court does not deny the 

Stay Relief Motion, the automatic stay should be extended pursuant to section 362(e) of the 

Bankruptcy Code until the conclusion of the final hearing on the Stay Relief Motion, which final 

hearing should be scheduled for 14 days after entry of this court’s decision in the Declaratory 

Relief Action. 

3. In regard to the Retiree Committee Objection, the Committee joins in the Retiree 

Committee’s arguments that (i) this court is the appropriate forum in which to determine the 

competing interests to ERS’s assets, (ii) the Bondholders are not entitled to additional adequate 

protection payments after the exhaustion of the Pre-Petition Segregated Account because they 

have failed to show that the value of their collateral is declining, and (iii) there is no basis to 

require the Commonwealth to provide adequate protection given that the Bondholders have no 

recourse against the Commonwealth. 

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WHEREFORE, the Committee respectfully requests that the court deny the Stay Relief 

Motion and grant such other and further relief as this court deems just and proper. 

Dated: July 10, 2018 

 

/s/ G. Alexander Bongartz .

PAUL HASTINGS LLP 

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

Andrew V. Tenzer (Pro Hac Vice) 

Michael E. Comerford (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 

andrewtenzer@paulhastings.com 

michaelcomerford@paulhastings.com 

alexbongartz@paulhastings.com 

Counsel to the Official Committee of Unsecured 

Creditors3

- and - 

/s/ Juan J. Casillas Ayala .

CASILLAS, SANTIAGO & TORRES LLC 

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

Diana M. Batlle-Barasorda, Esq., USDC - PR 213103 

Alberto J. E. Añeses Negrón, Esq., USDC - PR 302710 

Ericka C. Montull-Novoa, Esq., USDC - PR 230601 

El Caribe Office Building 

53 Palmeras Street, Ste. 1601 

San Juan, Puerto Rico 00901-2419 

Telephone: (787) 523-3434 

jcasillas@cstlawpr.com 

dbatlle@cstlawpr.com 

aaneses@cstlawpr.com 

emontull@cstlawpr.com 

Local Counsel to the Official Committee of Unsecured 

Creditors

 

3

 Paul Hastings LLP represents the Committee in this matter other than as to certain Oaktree entities that are ERS 

Bondholders, i.e., Oaktree-Forrest Multi-Strategy, LLC (Series B), Oaktree Opportunities Fund IX, L.P., 

Oaktree Opportunities Fund IX (Parallel 2), L.P., and Oaktree Value Opportunities Fund, L.P. 

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