UNITED STATES DISTRICT COURT

DISTRICT OF PUERTO RICO

---------------------------------------------------------------x

In re: PROMESA

Title III

THE FINANCIAL OVERSIGHT AND

MANAGEMENT BOARD FOR PUERTO RICO,

as representative of No. 17 BK 3283-LTS

THE COMMONWEALTH OF PUERTO RICO, et al.,

Debtors.

1

(Jointly Administered)

---------------------------------------------------------------x

TAMRIO, INC., CONSTRUCTORA SANTIAGO Re: ECF Nos. 614, 627, 685,

II, CORP., FERROVIAL AGROMAN, S.A., and and 686

FERROVIAL AGROMAN, LLC

Movants,

v.

THE FINANCIAL OVERSIGHT AND

MANAGEMENT BOARD FOR PUERTO RICO,

as representative of

THE COMMONWEALTH OF PUERTO RICO, et al.,

Respondents.

---------------------------------------------------------------x

 

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 (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); and (v) Puerto Rico Electric 

Power Authority (Bankruptcy Case No. 17 BK 4780-LTS) (Last Four Digits of Federal Tax ID: 3747). (Title III 

case numbers are listed as Bankruptcy Case numbers due to software limitations).

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STIPULATION TO RESOLVE MOTIONS TO COMPEL ASSUMPTION OR 

REJECTION OF EXECUTORY CONTRACTS FILED BY TAMRIO, INC., 

CONSTRUCTORA SANTIAGO II, CORP., FERROVIAL AGROMAN, S.A., AND 

FERROVIAL AGROMAN, LLC [ECF NOS. 614, 627, 685, AND 686] 

This stipulation (the “Stipulation”) is made as of July 16, 2018, by and between (i) the 

Puerto Rico Highways and Transportation Authority (“HTA”), by and through the Financial 

Oversight and Management Board for Puerto Rico (the “Oversight Board”), as HTA’s

representative pursuant to section 315(b) of the Puerto Rico Oversight, Management, and 

Economic Stability Act (“PROMESA”),2and (ii) Tamrio, Inc. (“Tamrio”), Constructora Santiago 

II, Corp. (“CSII”), Ferrovial Agroman, S.A. (“Ferrovial S.A.”), and Ferrovial Agroman, LLC 

(“Ferrovial LLC,” or collectively with Tamrio, CSII, and Ferrovial S.A., the “Movants”). 

Recitals

WHEREAS, on May 21, 2017, HTA, by and through the Oversight Board, as HTA’s 

representative pursuant to PROMESA section 315(b), filed a petition with the United States 

District Court for the District of Puerto Rico (the “District Court”) under title III of PROMESA 

(the “Title III Case”). 

WHEREAS, the Movants each filed a motion to compel HTA to assume or reject certain

executory contracts [ECF Nos. 614, 627, 685, and 686] (collectively, the “Motions”).

WHEREAS, the Motions seek an order requiring HTA to assume or reject certain 

construction contracts, to which the Movants are counterparties (as identified in the following 

paragraph, the “Construction Contracts”), and cure pre-petition obligations allegedly owed to the 

Movants on projects in various stages of construction arising out of the Construction Contracts.

WHEREAS, the Construction Contracts consist of the following, as identified by each of 

the Movants, their project number, and federal number, if applicable:

 

2

PROMESA has been codified in 48 U.S.C. §§ 2101-2241.

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Movant Project Number Federal Number

Tamrio AC-005374 LY-53(6)

Tamrio AC-010270 MP-102(18)

Tamrio AC-802271 MP-14(29)

Tamrio AC-800400 ER-31(23)

CSII AC-800470 N/A

Ferrovial S.A. AC-800308 LP-9999(104)

Ferrovial S.A. AC-00911 LP-9(6)

Ferrovial LLC AC-100087 MP-10(76)

Ferrovial LLC AC-017250 MP-172(12)

Ferrovial LLC AC-200266 MP-2(62)

Ferrovial LLC AC-800467 MP-18(11)

WHEREAS, HTA and the Movants met and conferred, and have resolved the pending 

Motions involving the Construction Contracts. 

NOW THEREFORE, IT IS HEREBY STIPULATED AND AGREED, by and 

among HTA and the Movants, through their counsel, each of whom represent and warrant they

possess the requisite authority to bind the respective parties hereto, as follows:

1. The Movants hereby withdraw their Motions with prejudice, effective 

immediately upon the District Court’s approval of the Stipulation.

2. HTA shall continue to perform its obligations under the Construction Contracts 

until such time as HTA elects to assume or reject the same. 

3. HTA and the Oversight Board do not agree with the assertions contained in the 

Motions, and the Stipulation does not constitute a waiver of any argument with respect thereto to 

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the extent raised by the Movants or any other party in subsequent proceedings in this Title III 

Case or otherwise.

4. The Stipulation shall not be construed as a waiver by Movants or HTA of any

argument in connection with any other executory contract not specifically included in this 

Stipulation. 

5. Because the Construction Contracts are funded with certain federal and/or state

funds, HTA shall continue to maintain segregated accounts (the “Segregated Accounts”) with a 

depository institution or trust company insured by the Federal Deposit Insurance Corporation to 

deposit funds transferred to it by Federal Highway Administration to pay certifications and 

retainage for the Construction Contracts. Upon the deposit of the federal funds in the Segregated 

Accounts, HTA will use reasonably commercial efforts to disburse the monies transferred to 

HTA for payment of certifications and retainage under the Construction Contracts within five (5) 

business day after HTA receives payment from FHA.

6. HTA agrees to the modification of the automatic stay as to the matters identified in 

Exhibit A (the “Prepetition Litigation”), pursuant to Bankruptcy Code sections 362(a) and 

922(a), made applicable to the Title III Case by PROMESA section 301(a) (the “Title III Stay”), 

solely to allow the Prepetition Litigation to proceed to final judgment in the Puerto Rico Court of 

First Instance and for any appeal to proceed to final judgment before the Puerto Rico Court of 

Appeals or Puerto Rico Supreme Court for these ordinary contract administration claims 

stemming from the Construction Contracts; provided, however, the Title III Stay shall continue 

to apply in all other respects to the Prepetition Litigation, including, but not limited to, the 

execution and enforcement of any judgment for money damages and provisional remedies

against HTA or any other Title III Debtor. 

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7. Nothing contained in this Stipulation shall operate as a waiver or modification of the 

Title III Stay so as to permit the prosecution against HTA or any other Title III debtor of any 

claim or claims by anyone other than the Movants as provided for herein and HTA reserves all 

rights, defenses, and protections with respect to any matters pending or that may arise in the Title 

III Case, including the treatment of any claim arising from the Construction Contracts under a 

plan of adjustment or otherwise in the Title III Case.

8. Any claim for post-petition work properly performed by the Movants under the 

Construction Contracts, which complies with section 503 of the Bankruptcy Code and is duly 

accepted by HTA pursuant to the terms and conditions of the Construction Contracts, shall be 

deemed an administrative expense claim pursuant to section 503(a) of the Bankruptcy Code, 

made applicable to the Title III Case by PROMESA section 301(a).

9. HTA and the Movants represent and warrant that they are properly and fully 

empowered to enter into and execute this Stipulation, and are not aware of any contractual

commitment or legal limitation of, impediment to, or prohibition against their entry into this 

Stipulation, and that the Stipulation is legal, valid, and binding upon them, upon entry of an order 

by this Court approving the Stipulation.

10. Neither this Stipulation, nor the settlement provided for herein, nor any statement 

made, action, or position taken, or document prepared or executed in connection with the 

negotiation, execution, or implementation of this Stipulation shall be deemed to be, or construed 

as, (a) an admission by any party of any liability, wrongdoing, act, or matter or that any claim or 

defense has or lacks merit; (b) a waiver of HTA’s rights to dispute, contest, setoff, or recoup any 

claim, including any claims asserted by the Movants in any claim arising from the Construction 

Contracts, or assert any related rights, claims, or defenses and all such rights are reserved; or 

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(c) an approval or assumption of any agreement or contract between the parties under 

Bankruptcy Code section 365.

11. Nothing in this Stipulation shall be deemed or construed as (a) creating or conferring 

any right upon any persons or entities (other than the Movants as expressly provided in this 

Stipulation) or (b) evidence of HTA’s willingness or obligation to consent to any other or future 

modifications of or relief from the Title III Stay with respect to any persons or entities.

12. This Stipulation contains the entire agreement by and between the parties with 

respect to the subject matter hereof, and all prior understandings or agreements, if any, are 

merged into this Stipulation.

13. This Stipulation shall be construed and interpreted in accordance with the laws of 

Puerto Rico. For purposes of construing this Stipulation, neither of the parties shall be deemed to

have been the drafter of the Stipulation.

14. Electronic copies of signatures on this Stipulation are acceptable, and an electronic 

copy of a signature on this Stipulation is deemed an original. This Stipulation may be executed in 

counterparts, each of which is deemed an original, but when taken together constitute one and 

the same document.

15. This Stipulation may not be modified other than by a signed writing executed by the 

parties hereto.

16. The District Court shall retain jurisdiction to hear any matters or disputes arising from 

or relating to this Stipulation.

17. This Stipulation shall be immediately effective and enforceable upon approval by the 

District Court.

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IN WITNESS WHEREOF and in agreement herewith, by and through their counsel, the

parties have executed and delivered this Stipulation as of the date first set forth above.

Dated: July 16, 2018

San Juan, Puerto Rico

/s/ Martin J. Bienenstock 

Martin J. Bienenstock 

Paul V. Possinger 

Ehud Barak 

Maja Zerjal 

PROSKAUER ROSE LLP 

Eleven Times Square 

New York, NY 10036 

Tel: (212) 969-3000 

Fax: (212) 969-2900 

/s/ Hermann D. Bauer

Hermann D. Bauer

USDC No. 215205

O’NEILL & BORGES LLC

250 Muñoz Rivera Ave., Suite 800

San Juan, PR 00918-1813

Tel: (787) 764-8181

Fax: (787) 753-8944

Attorneys for the Financial Oversight 

and Management Board as 

representative for the Debtors

/s/ José F. Cardona Jimenez

José F. Cardona Jimenez

USDC No. 124504

CARDONA JIMENEZ LAW 

OFFICES, PSC

PO Box 9023593

San Juan, PR 00902-3593

Tel: (787) 724-1303

Fax: (787) 724-1369

jf@cardonalaw.com

Attorney for Movants

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CERTIFICATE OF SERVICE

WE HEREBY CERTIFY that an electronic copy of the foregoing was filed with the Clerk of the 

Court using the CM/ECF system which will send notification of such filing to all attorneys of 

record.

/s/ Hermann D. Bauer

Hermann D. Bauer

 USDC No. 215205

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Exhibit A

Itemized List of Pending Litigation under the Construction Contracts

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Constructora Santiago 

1 Administrative Claim Constructora Santiago 

vs ACT 

Reclamación por gastos de Operación 

Extendida de Campo “Field Office 

Overhead” $563,236.22 

AC-800470

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Document Page 10 of 14
Ferrovial Agroman LLC 

1 KAC-2016-0393 (508) 

Superior de San Juan 

Ferrovial Agroman, LLC 

vs ACT 

AC-221187 – Carril para sistema 

de metro urbano PR-22 – Toa Baja 

AC-556703 – Reparación puente 

2863 entre Ciales y Morovis 

AC-200249 – Conversión expreso 

PR-2-Ponce 

AC-520114- Nuevas plazas de 

peaje – Juana Díaz 

AC-010181 – Reconst. Pavimentos 

PR-2 Bayamón

2 KAC-2016-0394 (806) 

Superior de San Juan 

Ferrovial Agroman, LLC 

vs ACT 

AC-010262 – Reemplazo puente 

sobre Canal Corazones PR-102 – 

Mayagüez

3 Administrativo 

Proyecto de Ejecución

Ferrovial Agroman, LLC 

vs ACT

AC-100087 

PR-10 Rehabilitación Ponce

4 Administrativo 

Proyecto de Ejecución

Ferrovial Agroman, LLC 

vs ACT

AC-017250 

Pr-172 km0.0-12.5 Caguas-Cidra

5 Administrativo 

Proyecto de Ejecución

Ferrovial Agroman, LLC 

vs ACT

AC-200266 

PR-2 Mejoras Geométricas 

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Ferrovial Agroman S.A. 

1 Administrativo Ferrovial Agroman, S.A. 

vs ACT 

Construcción de Carretera PR-9, 

desde la Avenida Las Américas 

hasta la PR-132-Ponce 

(AC-000915)

2 KAC-2016-0392 (807) 

Superior de San Juan 

Ferrovial Agroman, S.A. 

vs ACT 

Construcción de Carretera PR-9, 

desde la 

PR-132 hasta la PR-123-Ponce 

(AC-000911)

3 KAC-2016-0395 (803) 

Superior de San Juan 

Ferrovial Agroman, S.A. 

vs ACT 

AC-006827 (Autopista Roberto 

Sánchez-Canóvanas); 

AC-300109 (Rehab. pavimento 

PR-30-Juncos; 

AC-015926- (Corrección 

deslizamiento PR-159-Morovis)

4 Administrativo Ferrovial Agroman, S.A. 

vs ACT

AC-200249 (Conversión a expreso 

PR-2-Ponce)

5 Administrativo Ferrovial Agroman, S.A. 

vs ACT

AC-002131 

Mejoras Área Estación Cupey

6 Administrativo 

Proyecto de Ejecución

Ferrovial Agroman, S.A. 

vs ACT

AC-800308 

Mejoras a Señales Riomar

7 Administrativo 

Proyecto de Ejecución

Ferrovial Agroman, S.A. 

vs ACT

AC-00911 

PR-9 a PR-132

8 Administrativo 

Proyecto de Ejecución

Ferrovial Agroman, S.A. 

vs ACT

AC-800467 

PR-18 a PR-21 San Juan

9 Administrativo Ferrovial Agroman, S.A. 

vs ACT

AC-011019 

Mejoras PR-110 Añasco/Moca

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1

Tamrío, Inc.

1 KAC-2016-1061 (503)

Superior de San Juan

Tamrío, Inc. vs ACT Desvío de Lares, PR-111

(AC-011187)

2 KAC-2017-0093 (603)

Superior de San Juan

Tamrío, Inc. vs ACT Mejoras a carretera PR-308-Cabo 

Rojo

AC-030809

3 Administrativo Tamrío, Inc. vs ACT Vereda ciclista PR-165 (paseo lineal)

Toa Baja (AC-010166)

4 Administrativo Tamrío, Inc. vs ACT Conversion a expreso PR-2-

Hormigueros

(AC-200215)

5 Administrativo

Proyecto de Ejecución

Tamrío, Inc. vs ACT Yabucoa

AC-005374

6 Administrativo

Proyecto de Ejecución

Tamrío, Inc. vs ACT Cayey

AC-802271

7 Administrativo

Proyecto de Ejecución

Tamrío, Inc. vs ACT Naguabo

AC-800400

8 Administrativo Tamrío, Inc. vs ACT Guanica

AC-011628

9 Administrativo Tamrío, Inc. vs ACT Peñuelas

AC-313205

10 Administrativo Tamrío, Inc. vs ACT San Germán

AC-210207

11 Administrativo Tamrío, Inc. vs ACT San Germán

AC-210208

12 Administrativo Tamrío, Inc. vs ACT Orocovis

AC-015567

13 Administrativo Tamrío, Inc. vs ACT El Cinco, Hormigueros

AC-034507

14 Administrativo Tamrío, Inc. vs ACT Ponce

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2

AC-200280

15 Administrativo Tamrío, Inc. vs ACT Caguas

AC-076307

16 Administrativo Tamrío, Inc. vs ACT San Germán – Cabo Rojo

AC-010270

17 Administrativo Tamrío, Inc. vs ACT Toa Baja

AC-010166

18 Administrativo Tamrío, Inc. vs ACT Mayagüez, Añasco, Utuado/Lares

AC-815536

19 Administrativo Tamrío, Inc. vs ACT Canóvanas

AC-096206

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