AMERICAS 124847585 v6 

UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF PUERTO RICO 

OBJECTION OF GOLDENTREE ASSET MANAGEMENT, LP TO URGENT MOTION 

OF THE FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO 

RICO, AS DEBTOR’S TITLE III REPRESENTATIVE, REQUESTING FURTHER 

EXTENSION OF FILING DEADLINES (A) TO AUGUST 25, 2023 FOR SUBMISSION 

OF PREPA’S PROPOSED AMENDED PLAN OF ADJUSTMENT AND RELATED 

DOCUMENTS AND (B) TO AUGUST 30, 2023 FOR SUBMISSION OF JOINT STATUS 

REPORT AND PROPOSED CONFIRMATION SCHEDULE(S) 

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 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 following: (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). 

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) 

Re: ECF No. 24909 

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 

Re: ECF No. 3887 

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AMERICAS 124847585 v6 

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

GoldenTree Asset Management, LP (“GoldenTree”) submits this objection (the 

“Objection”) to the Urgent Motion of the Financial Oversight and Management Board for Puerto 

Rico, as Debtor’s Title III Representative, Requesting Extension of Filing Deadlines (A) to August 

25, 2023 for Submission of PREPA’s Proposed Amended Plan of Adjustment and Related 

Documents and (B) to August 30, 2023 for Submission of Joint Status Report and Proposed 

Confirmation Schedule(s) [Case No. 17-4780, ECF No. [3887] (the “Urgent Motion”). In support 

of the Objection, GoldenTree respectfully states as follows: 

OBJECTION 

1. At 9:26 p.m. Eastern Time on Wednesday, August 16, 2023, counsel to the 

Financial Oversight and Management Board for Puerto Rico (the “Oversight Board”) sent an 

email to representatives of a number of parties, including GoldenTree, indicating that the Oversight 

Board, acting on behalf of the Puerto Rico Electric Power Authority (“PREPA” or the “Debtor”), 

intended to file yet another urgent motion to extend by an additional five days the dates by which 

the Debtor must file its proposed third amended plan of adjustment and the parties must file their 

joint status report with proposed litigation schedule(s) for confirmation proceedings (together, the 

“Plan Deadlines”), and asking whether the parties to whose representatives the email was sent 

objected to the relief to be sought by such urgent motion. By the email, the Oversight Board 

requested responses by 3:00 p.m. Eastern Time on Thursday, August 16, 2023. At 10:20 a.m. 

Eastern Time on Thursday, August 17, 2023, counsel to the Oversight Board sent a follow-up 

email noting the Oversight Board’s decision to increase the requested extension of the Plan 

Deadlines by an additional two days, for a total of one week. 

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2. At approximately 12:47 p.m. Eastern Time today, undersigned counsel for 

GoldenTree replied to the Oversight Board by email indicating that GoldenTree objects to the 

relief and would request a status conference (the “Status Conference”) regarding the path forward 

in this Title III case. In last week’s Statement of GoldenTree Asset Management LP Regarding

Urgent Motion of the Financial Oversight and Management Board for Puerto Rico, as Debtor’s 

Title III Representative, Requesting Extension of Filing Deadlines (A) to August 25, 2023 for 

Submission of PREPA’s Proposed Amended Plan of Adjustment and Related Documents and (B) 

to August 30, 2023 for Submission of Joint Status Report and Proposed Confirmation Schedule(s)

[Case No. 17-4780, ECF No. 3882] (the “Statement”), filed on August 10, 2023, GoldenTree did 

not object to the Oversight Board’s prior request to extend the Plan Deadlines, however, in 

refraining from objecting, GoldenTree reiterated to the Oversight Board (and disclosed to the 

Court in its filed Statement) its growing concerns regarding (i) GoldenTree’s exclusion from 

settlement discussions the Oversight Board was engaging in with certain other holders of the 

approximately $8.4 billion in outstanding revenue bonds (collectively, the “Bonds”) issued by the 

Debtor pursuant to that certain Trust Agreement, dated as of January 1, 1974 (the “Trust 

Agreement”), by and between PREPA and a predecessor of U.S. Bank National Association, and 

(ii) the significant prejudice the continuous delays have caused the holders of such Bonds 

(collectively, the “Bondholders”). 

3. The Oversight Board simply ignored these concerns, which have been further 

augmented by yet another delay sought by the Oversight Board. Last year, on September 29, 2022, 

this Court entered an order (the “Stay Order”)2 staying litigation with respect to a motion (the 

2

 ECF No. 3013. 

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“Motion to Dismiss”)3 filed by the Ad Hoc Group of PREPA Bondholders and certain monoline 

insurers seeking to dismiss PREPA’s Title III case or, in the alternative, for relief from the 

automatic stay to obtain appointment of a receiver based upon the lack of progress made in 

PREPA’s Title III case and the resulting unreasonable delay and prejudice to Bondholders. Rather 

than allowing prosecution of the Motion to Dismiss, the Court opted to “establish meaningful 

deadlines and require a plan proposal,”4 and, accordingly, entered the Stay Order directing the 

Oversight Board to file “a proposed plan of adjustment that it believes could be confirmable” by 

December 1, 2022, accompanied by a “proposed confirmation schedule contemplating a June 2023 

confirmation hearing.”5 We are now rapidly approaching the end of August – nearing the oneyear anniversary of the Stay Order – and this original timeline has been wholly disregarded. 

4. The Debtor and the Oversight Board have kept themselves busy through the months 

of endless delay – engaging in secret negotiations with some, but not all, of the Bondholders. 

GoldenTree, despite holding approximately $1 billion of the Bonds, has received no engagement 

whatsoever from the Debtor or the Oversight Board, nor any transparency regarding the content 

of such negotiations or the resulting deal. In light of this obstructive behavior, GoldenTree can 

only expect that the proposed plan will (i) provide for disparate treatment favoring the Oversight 

Board’s chosen few Bondholders, and (ii) gerrymander classification accordingly. GoldenTree 

has the exact same rights under the Trust Agreement as those Bondholders that the Oversight 

Board has inexplicably chosen to elevate to a higher status, therefore the separate classification of 

such Bondholders in an attempt to justify their disparate treatment necessarily renders such plan 

3

 ECF No. 2973. 

4 See Sept. 30, 2022, Hr’g Tr. at 21:17-23. 

5 See ECF No. 3013. 

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unconfirmable under sections 1122, 1123(a)(4), and 1129(b)(1) of title 11 of the United States 

Code (the “Bankruptcy Code”), made applicable to this proceeding pursuant to section 2161 of 

title 48 of the United States Code. Indeed, this unfair and unequal treatment of similarly situated 

creditors is exactly what Congress sought to prevent when enacting the Bankruptcy Code. See 

Liona Corp. v. PCH Assocs. (In re PCH Assocs.), 949 F.2d 585, 598 (2d Cir. 1991) (describing 

“equal treatment of similarly situated creditors” as “perhaps the predominant policy objective of a 

bankruptcy proceeding”). Accordingly, GoldenTree submits that the Court should hold the Status 

Conference to ensure transparency and discuss with the parties the path forward. 

5. Moreover, the endless delays and now weekly “Urgent Motions” for more delay 

further underscore the massive prejudice and injury to Bondholders from the passage of time while 

PREPA’s multitude of breaches under the Trust Agreement continue unabated and unremedied. 

PREPA has collected and misappropriated, is collecting and misappropriating, and will continue 

to collect and misappropriate, billions of its revenues that constitute Net Revenues (as defined in 

the Trust Agreement) that should be deposited by PREPA into the Sinking Fund (as defined in the 

Trust Agreement) pursuant to the Trust Agreement and become collateral of the Bondholders 

under this Court’s Opinion and Order Granting in Part and Denying in Part the Financial 

Oversight and Management Board for Puerto Rico’s Motion for Summary Judgment and the 

Defendant’s and Intervenor- Defendants’ Cross-Motion for Summary Judgment (the “Summary 

Judgment Order”)6 The continuing delays are only increasing the ongoing prejudice to the 

approximately $8.4 billion of outstanding Bonds, which have been in a continuous state of default 

6 See Adv. Pro. 19-00391 (LTS), ECF No. 147 ((hereinafter cited as “Adv. Pro. ECF No.”). Although GoldenTree 

believes that certain of the rulings set forth in the Summary Judgment Order and the Order Concerning 

Bondholders’ Unsecured Net Revenue Claim Estimation [Adv. Pro. ECF No. 315] are incorrect, it cannot 

currently seek review. GoldenTree intends to appeal such rulings and reserves all rights in connection therewith. 

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since 2009, and which have not received any payment whatsoever since 2014. With further delays 

seemingly inevitable, the Bondholders need to be able to protect their property rights with respect 

to the Bonds to avoid the irreparable injury that will otherwise result. 

WHEREFORE, GoldenTree respectfully requests that the Court deny the Urgent Motion 

and schedule a Status Conference in this Title III case to provide some measure of transparency 

regarding the Oversight Board’s actions and plans and to discuss the path forward in this Title III 

case. 

Dated: August 17, 2023 Respectfully submitted, 

Miami, Florida 

/s/ Lydia M. Ramos Cruz 

Lydia M. Ramos Cruz 

USDC-PR 214104 

1509 López Landrón Street 

American Airlines Building, PH 

San Juan, Puerto Rico 00911 

Tel.: (787) 508-2525 

lramos@ramoscruzlegal.com 

/s/ John K. Cunningham 

Thomas E Lauria (admitted pro hac vice) 

Glenn M. Kurtz (admitted pro hac vice) 

Thomas E. MacWright 

WHITE & CASE LLP 

1221 Avenue of the Americas 

New York, NY 10036 

Tel.: (212) 819-8200 

Fax: (212) 354-8113 

tlauria@whitecase.com 

gkurtz@whitecase.com 

tmacwright@whitecase.com 

John K. Cunningham (admitted pro hac vice) 

Keith Wofford (admitted pro hac vice) 

Michael C. Shepherd 

WHITE & CASE LLP 

200 S. Biscayne Blvd., Suite 4900 

Miami, FL 33131 

Tel.: (305) 371-2700 

Fax: (305) 358-5744 

jcunningham@whitecase.com 

kwofford@whitecase.com 

mshepherd@whitecase.com

Co-Counsel for GoldenTree Asset Management LP 

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