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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ORDER AUTHORIZING EMPLOYMENT AND RETENTION OF KROMA 

ADVERTISING, INC. AS COMMUNICATIONS ADVISOR TO OFFICIAL 

COMMITTEE OF UNSECURED CREDITORS, PURSUANT TO BANKRUPTCY 

CODE SECTION 1103(a) AND LOCAL BANKRUPTCY RULE 2014-1, 

EFFECTIVE AS OF FEBRUARY 1, 2018 

Upon the application (the “Application”)2 of the Official Committee of Unsecured 

Creditors of the Commonwealth of Puerto Rico (the “Committee”) appointed in the abovecaptioned cases for entry of an order (the “Order”), pursuant to sections 1103 of the Bankruptcy 

Code and Local Rule 2014-1 authorizing the retention and employment of Kroma Advertising, 

                                                            

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-BK-3283 (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-BK3284 (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). 2 Capitalized terms not defined herein shall have the meanings ascribed to them in the 

Application. 

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Inc. (“Kroma”), effective as of February 1, 2018, as the Committee’s communications advisor; 

and upon the Medina Declaration annexed to the Application in support thereof; the court hereby 

FINDS AND DETERMINES that (i) the court has jurisdiction to consider the Application and 

the relief requested therein pursuant to section 306(a) of PROMESA; (ii) venue of the Title III 

Cases and the Application in this district is proper pursuant to section 307(a) of PROMESA; (iii) 

the Committee provided due and proper notice of the Application and no other or further notice 

need be provided; (iv) it appearing that Kroma is “disinterested” and eligible for retention 

pursuant to sections 101(14) of the Bankruptcy Code, (v) the terms of the engagement pursuant 

to the Engagement Letter and as modified herein, are reasonable and appropriate; and (vi) this 

court having determined that the relief requested in the Application is necessary and in the best 

interests of the Committee and its members; and after due deliberation, and sufficient cause 

appearing therefor, it is hereby ORDERED THAT: 

1. The Application is APPROVED. 

2. In accordance with section 1103 of the Bankruptcy Code, made applicable to the 

Title III Cases pursuant to section 301(a) of PROMESA, the Committee is authorized to employ 

and retain Kroma as its communications advisor under the terms and for the purposes set forth 

and as requested in the Application, the Medina Declaration, and the Engagement Letter as 

modified herein. 

3. Kroma is authorized to perform the services enumerated in the Application and 

the Medina Declaration. The terms of the Engagement Letter are approved, and Kroma shall be 

entitled to be compensated and reimbursed for the services identified in the Engagement Letter 

and Application, pursuant to PROMESA sections 316 and 317, the applicable Bankruptcy Rules, 

the Local Rules of this court, and such orders as the court may direct. 

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4. Kroma’s fees for services will be based on a flat rate $30,000 per month, plus 

reasonable and necessary expenses, as set forth in the Application, Medina Declaration and 

Engagement Letter. Kroma shall be compensated in accordance with, and will file interim and 

final fee applications for allowance of its compensation and expenses in accordance with, the 

Interim Compensation Order. Pursuant to Bankruptcy Code section 503(b)(1), made applicable 

by PROMESA section 301(a), the fees and expenses of Kroma under this Order shall be an 

administrative expense of the Debtors. 

5. The title III Debtors (other than COFINA) shall be responsible for such 

compensation and reimbursement of expenses in accordance with the procedures outlined in the 

Interim Compensation Order. Neither the Committee nor any of its members, agents, attorneys 

or advisors are or shall be responsible for the payment of Kroma’s fees and costs arising out of 

the engagement pursuant to this Order and the Engagement Letter, regardless of whether or not 

Kroma is paid in full by the Debtors. 

6. The Committee and Kroma are authorized and empowered to take all necessary 

actions to implement the relief granted in this Order. 

7. This court shall retain jurisdiction with respect to all matters arising from or 

related to this Order or Kroma’s services for the Committee. 

8. To the extent there is an inconsistency between this Order, the Engagement Letter 

and the Application, the terms of this Order shall govern. 

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9. The terms and conditions of this Order shall be immediately effective and 

enforceable upon its entry. 

10. This order resolves docket entry no. 2325 in Case No. 17-3283. 

SO ORDERED. 

Dated: February 22, 2018 

 /s/ Laura Taylor Swain 

 LAURA TAYLOR SWAIN 

 United States District Judge 

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