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IN THE UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF PUERTO RICO 

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 

No. 17 BK 3283-LTS 

(Jointly Administered) 

URGENT MOTION OF ASSURED GUARANTY CORP., ASSURED GUARANTY 

MUNICIPAL CORP. AND NATIONAL PUBLIC FINANCE GUARANTEE 

CORPORATION FOR LEAVE TO REPLY TO DOCKET ENTRY NO. 2863 

 

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 

(“Commonwealth”) (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).

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To the Honorable United States District Judge Laura Taylor Swain: 

Assured Guaranty Corp., Assured Guaranty Municipal Corp. and National Public Finance 

Guarantee Corporation (collectively, “Objectors”) respectfully submit this Urgent Motion of 

Assured Guaranty Corp., Assured Guaranty Municipal Corp. and National Public Finance 

Guarantee Corporation for Leave to Reply to Docket Entry No. 2863 (“Motion”) seeking entry 

of an order, substantially in the form attached hereto as Exhibit A, permitting the Objectors to 

file a reply memorandum to the Response to Reply Memorandum in Further Support of 

Objections of Assured Guaranty Corp., Assured Guaranty Municipal Corp. and National Public 

Finance Guarantee Corporation to the Magistrate Judge’s February 26, 2018 Order (ECF No. 

2863) (“Bhatia II Response”). 

BACKGROUND 

1. On March 12, 2018, the Objectors filed the Objections of Assured Guaranty 

Corp., Assured Guaranty Municipal Corp. and National Public Finance Guarantee Corporation 

to the Magistrate Judge’s February 26, 2018 Order (ECF No. 2707) (“Objections”).2 In their 

Objections, the Objectors relied on a 2017 decision from the Supreme Court of Puerto Rico, 

Bhatia-Gautier v. Roselló-Nevares, 2017 TSPR 173, 2017 WL 4975587 (P.R. 2017) (“Bhatia I”). 

2. On March 16, 2018, after the Objections were filed, Judge Lauracelis 

Roques-Arroyo of the Commonwealth of Puerto Rico Court of First Instance, San Juan Part, 

Superior Court (“Superior Court”) issued a decision, Bhatia-Gautier v. Roselló-Nevares, Civil 

No. SJ2017CV00271 (P.R. Super. Ct. Mar. 16, 2018) (“Bhatia II”). 

3. On March 23, 2018, Respondents filed the Response to Objections of Assured 

Guaranty Corp., Assured Guaranty Municipal Corp. and National Public Finance Guarantee 

Corporation to the Magistrate Judge’s February 26, 2018 Order (ECF No. 2798) (“Response”). 

 

2

 Capitalized terms not defined herein are defined in the Objections. “ECF No.” refers to 

docket entries in Case No. 17 BK 3283-LTS, unless otherwise noted. 

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4. On March 26, 2018, Objectors filed Assured Guaranty Corp.’s, Assured Guaranty 

Municipal Corp.’s and National Public Finance Guarantee Corporation’s Informative Motion 

Regarding Recent Authority Supporting their Objections to the Magistrate Judge’s February 26, 

2018 Order (ECF No. 2815) (“Informative Motion”) submitting a certified translation of BhatiaGautier II. In the Informative Motion, Objectors also informed the Court that they intended to 

seek leave from the Court in order to file a reply memorandum to the Response. On March 28, 

2018, the Court issued the Order Scheduling Reply Brief to Docket Entry No. 2798 (ECF No. 

2819) granting Objectors leave to submit a five page reply by April 2, 2018. 

5. On April 2, 2018, the Objectors filed the Reply Memorandum in Further Support 

of Objections of Assured Guaranty Corp., Assured Guaranty Municipal Corp. and National 

Public Finance Guarantee Corporation to the Magistrate Judge’s February 26, 2018 Order

(ECF No. 2835) (“Reply”). 

6. On April 4, 2018, Respondents filed the Urgent Motion for Leave to Respond to 

the Reply Memorandum in Further Support of Objections of Assured Guaranty Corp., Assured 

Guaranty Municipal Corp. and National Public Finance Guarantee Corporation to the 

Magistrate Judge’s February 26, 2018 Order (ECF No. 2843), which requested entry of an order 

permitting Respondents to respond to Objectors’ Reply. On April 5, 2018, the Court issued the 

Order Scheduling Reply Brief to Docket Entry No. 2835 (ECF No. 2845) granting Respondents 

leave to submit a five page reply by April 9, 2018. 

7. On April 9, 2018, Respondents filed the Bhatia II Response. See ECF No. 2863. 

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RELIEF REQUESTED 

8. Respondents’ Bhatia II Response raises new arguments regarding Bhatia II that 

were not raised in their Response to the Objections. Objectors respectfully request that they be 

granted leave to submit a reply memorandum in order to reply to the Bhatia II Response. 

9. Respondents were permitted to file the Bhatia II Response in order to respond to 

arguments that Objectors made regarding Bhatia II in their Reply. Given that Bhatia II was 

issued after the Objections were filed, Objectors could only make arguments regarding Bhatia II 

in their Reply. 

10. Moreover, in Bhatia II, the Superior Court relied and expanded on the Puerto Rico 

Supreme Court’s findings in Bhatia I. In the Objections, Objectors relied on Bhatia I and 

attached a certified translation of the decision. See ECF No. 2707 at 4, 11; ECF No. 2707-3. In 

their Response to the Objections, Respondents failed to address Bhatia I, indeed it is not cited in 

the Response. See generally ECF No. 2798. Thus, Respondents’ arguments regarding the 

Bhatia line of cases were made for the first time in the Bhatia II Response. Objectors should be 

permitted to reply to these arguments. 

11. Counsel for Objectors have conferred with counsel for Respondents, who advised 

that Respondents do not oppose this Motion. 

12. For these reasons, Objectors respectfully request that the Court enter an order, 

substantially in the form attached hereto as Exhibit A, granting Objectors leave to file a reply 

memorandum, not to exceed five (5) pages, to the Bhatia II Response by 5:00 p.m. (Atlantic 

Standard Time) on April 16, 2018. 

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Dated: New York, New York 

 April 10, 2018 

CASELLAS ALCOVER & BURGOS P.S.C. 

By: /s/ Heriberto Burgos Pérez 

Heriberto Burgos Pérez 

USDC-PR 204809 

Ricardo F. Casellas-Sánchez 

USDC-PR 203114 

Diana Pérez-Seda 

USDC-PR 232014 

P.O. Box 364924 

San Juan, PR 00936-4924 

Telephone: (787) 756-1400 

Facsimile: (787) 756-1401 

Email: hburgos@cabprlaw.com 

 rcasellas@cabprlaw.com 

 dperez@cabprlaw.com 

Attorneys for Assured Guaranty Corp. and 

Assured Guaranty Municipal Corp. 

CADWALADER, WICKERSHAM & TAFT 

LLP 

By: /s/ Howard R. Hawkins, Jr. 

Howard R. Hawkins, Jr.* 

Mark C. Ellenberg* 

Ellen V. Holloman* 

Ellen M. Halstead* 

Gillian Groarke Burns* 

Thomas J. Curtin* 

Casey J. Servais* 

200 Liberty Street 

New York, NY 10281 

Telephone: (212) 504-6000 

Facsimile: (212) 406-6666 

Email: howard.hawkins@cwt.com 

mark.ellenberg@cwt.com 

ellen.holloman@cwt.com 

ellen.halstead@cwt.com 

gillian.burns@cwt.com 

thomas.curtin@cwt.com 

casey.servais@cwt.com 

* Admitted pro hac vice

Attorneys for Assured Guaranty Corp. and 

Assured Guaranty Municipal Corp. 

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ADSUDAR MUÑOZ GOYCO SEDA & 

PÉREZ-OCHOA, PSC, P.S.C. 

By: /s/ Eric Pérez-Ochoa 

Eric Pérez-Ochoa 

USDC-PR No. 206,314 

Luis A. Oliver-Fraticelli 

USDC-PR NO. 209,204 

208 Ponce de Leon Ave., Suite 1600 

San Juan, PR 00936 

Telephone: (787) 756-9000 

Facsimile: (787) 756-9010 

Email: epo@amgprlaw.com 

 loliver@amgprlaw.com 

Attorneys for National Public Finance 

Guarantee Corporation

WEIL, GOTSHAL & MANGES LLP 

By: /s/ Jared R. Friedmann 

Marcia Goldstein* 

Jonathan Polkes* 

Gregory Silbert* 

Jared R. Friedmann* 

767 Fifth Avenue 

New York, New York 10153 

Telephone: (212) 310-8000 

Facsimile: (212) 310-8007 

Email: marcia.goldstein@weil.com 

 jonathan.polkes@weil.com 

 gregory.silbert@weil.com 

 jared.friedmann@weil.com 

* Admitted pro hac vice

Attorneys for National Public Finance 

Guarantee Corporation

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CERTIFICATION 

In accordance with Sections I.H and III.F of the Fourth Amended Notice, Case 

Management and Administrative Procedures (ECF No. 2839-1), Local Bankruptcy Rule 9013-

1(a)(1), and Standing Orders entered by the Court on September 15, 2017, the undersigned 

hereby certifies that counsel has carefully examined the matter and concluded that there is a true 

need for this Motion; have not created the urgency through any lack of due diligence; have made 

a bona fide effort to resolve the matter; have made reasonable, good-faith communications in an 

effort to resolve or narrow the issues that are being brought before the Court; and have conferred 

with counsel for the Respondents, and no party opposes the relief requested herein. 

At New York, New York, 10th day of April, 2018. 

By: /s/ Howard R. Hawkins, Jr.* 

 Howard R. Hawkins, Jr. 

 * Admitted pro hac vice 

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CERTIFICATE OF SERVICE 

I hereby certify that I filed this document electronically with the Clerk of the Court using 

the CM/ECF System, which will send notification of such filing to all parties of record in the 

captioned case. Further, I directed that the following counsel of record be served by U.S. Mail: 

Office of the United States Trustee for Region 21 

Edificio Ochoa 

500 Tanca Street, Suite 301 

San Juan, PR 00901-1922 

Gerardo J. Portela Franco 

Puerto Rico Fiscal Agency and Financial 

Advisory Authority (AAFAF) 

De Diego Ave. Stop 22 

San Juan, Puerto Rico 00907 

John J. Rapisardi, Esq. 

O’Melveny & Myers LLP 

7 Times Square 

New York, New York 10036 

Andrés W. López, Esq. 

Law Offices of Andrés W. López 

902 Fernández Juncos Ave. 

San Juan, PR 00907 

Martin J. Bienenstock, Esq. 

Proskauer Rose LLP 

Eleven Times Square 

New York, New York 10036-8299 

Hermann D. Bauer, Esq. 

O’Neill & Borges LLC 

250 Muñoz Rivera Ave., Suite 800 

San Juan, PR 00918-1813 

Nancy A. Mitchell, Esq. 

Greenberg Traurig LLP 

200 Park Avenue 

New York, New York 10166 

Arturo Diaz-Angueira, Esq. 

Cancio, Nadal, Rivera & Diaz, P.S.C. 

403 Muñoz Rivera Ave. 

San Juan (Hato Rey), PR 00918-3345 

Luc A. Despins, Esq. 

Paul Hastings LLP 

200 Park Avenue 

New York, New York 10166 

Juan. J. Casillas Ayala 

Casillas, Santiago & Torres LLC 

El Caribe Office Building 

53 Palmeras Street, Suite 1601 

San Juan, PR 00901-2419 

Robert Gordon, Esq. 

Jenner & Block LLP 

919 Third Avenue 

New York, New York 10022 

A.J. Bennazar-Zequeira 

Bennazar, Garcia & Milian, C.S.P. 

Edificio Union Plaza PH-A piso 18 Avenida 

Ponce de Leon #416 

Hato Rey, PR 00918 

At New York, New York, 10th day of April, 2018. 

By: /s/ Howard R. Hawkins, Jr.* 

 Howard R. Hawkins, Jr. 

 * Admitted pro hac vice 

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