UNITED STATES DISTRICT COURT

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 

Re: ECF Nos. 18602, 21005, 22400, 

22682, 22736, 22952, 23398, 

23780, 24298 

(Jointly Administered) 

STATUS REPORT CONCERNING

COMMUNITY HEALTH FOUNDATION OF P.R. INC.’S MOTION FOR

ALLOWANCE AND PAYMENT OF ADMINISTRATIVE EXPENSE AND REQUEST 

FOR EVIDENTIARY HEARING

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

The Commonwealth of Puerto Rico (the “Commonwealth”), by and through the Financial 

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

Commonwealth’s representative pursuant to section 315(b) of the Puerto Rico Oversight, 

Management, and Economic Stability Act (“PROMESA”),2 and Community Health Foundation of 

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

(Last Four Digits of Federal Tax ID: 3747); and (vi) Puerto Rico Public Building Authority (“PBA”) (Bankruptcy 

Case No. 19-BK-5523-LTS). (Title III case numbers are listed as Bankruptcy Case numbers due to software 

limitations).

2

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

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P.R. Inc. (“CHF” and, together with the Oversight Board, the “Parties”), respectfully submit this 

status report and request for evidentiary hearing relating to Community Health Foundation of P.R. 

Inc.’s Motion for Allowance and Payment of Administrative Expense [ECF No. 18602] (the 

“Motion”), stating as follows: 

Status Report and Request for Evidentiary Hearing

1. CHF’s Motion has been pending since late 2021. In the nearly two years since it 

was filed, the Parties have attempted to resolve the Motion through both briefing before this Court 

and informal investigation of the amount of wraparound payment, if any, due to CHF. As 

explained in the Parties’ prior joint status reports, such investigation has involved the receipt of 

information from third parties (including multiple managed care organizations operating in the 

Commonwealth with whom CHF contracts), the analysis of such information and documents, and 

in-person and telephonic meetings between the Parties. The Parties’ ongoing efforts in this regard 

have resulted in the Court adjourning the hearing on CHF’s Motion numerous times. It is currently 

set for argument at the omnibus hearing to be held on August 30, 2023. See Order Adjourning 

Hearing Concerning Community Health Foundation of P.R. Inc.’s Motion for Allowance and 

Payment of Administrative Expense [ECF No. 24298]. 

2. The Parties are still engaging in their investigation of the claims in CHF’s Motion, 

and they continue to hope they will be able to resolve this matter consensually via settlement. 

However, given the need to finally resolve all administrative expense claims brought against the 

Commonwealth and the potential that they will be unable to reach agreement on the amount that 

CHF is due, the Parties wish to schedule a hearing before this Court at which they can present 

evidence and testimony regarding any remaining areas of dispute regarding CHF’s claim. The 

Parties therefore request, pursuant to paragraph I.G. of the Seventeenth Amended Notice, Case 

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Management and Administrative Procedures [ECF No. 24726-1], that the Court schedule an 

evidentiary hearing on the Motion. 

3. In connection with such a hearing, the Parties propose the following schedule: 

Date Event

September 22, 2023 Close of discovery. All depositions and document production 

complete by this date. 

September 29, 2023 Deadline for the Parties to file declarations by any witnesses the Party 

intends to call at the evidentiary hearing. The declarations will serve 

as the sole required disclosure of each Party’s witnesses (including any 

expert witnesses) to testify at the hearing, and will constitute each 

witness’s direct testimony. After filing any declarations and before the 

evidentiary hearing, the Parties may (but need not) agree and stipulate 

that a declaration is admissible and the declarant need not appear at the 

hearing for cross examination. 

October 6, 2023 Deadline for the Parties to file supplemental briefing, if any, on CHF’s 

motion. 

October 13, 2023 Deadline for the Parties to file responses to any supplemental briefing 

on CHF’s motion. 

Deadline for the Parties to file exhibit lists of all exhibits to be 

submitted at the evidentiary hearing. The Parties agree to take all 

reasonable efforts to stipulate to the authenticity and admissibility of 

evidence. 

Week of October 23, 

2023 

Evidentiary hearing on CHF’s motion. Presently the Parties expect the 

hearing will require no more than one day, inclusive of evidence and 

any argument. 

4. In connection with the Parties’ request to schedule an evidentiary hearing, they have 

already started to engage in formal discovery, including serving requests for the production of 

documents and notices of deposition. Such discovery is currently ongoing. 

5. Accordingly, the Parties respectfully request that the Court adjourn the hearing on 

the Motion currently set for August 30, 2023 and set the Motion for an evidentiary hearing during 

the week of October 23, 2023, or at another date on which the Court is available. 

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Dated: August 21, 2022 

San Juan, Puerto Rico 

Respectfully submitted, 

O’NEILL & BORGES LLC

By: /s/ Hermann D. Bauer 

Hermann D. Bauer 

USDC No. 215205 

250 Muñoz Rivera Ave., Suite 800 

San Juan, PR 00918-1813 

Telephone: (787) 764-8181 

Facsimile: (787) 753-8944 

Email: hermann.bauer@oneillborges.com 

PROSKAUER ROSE LLP

By: /s/ Brian S. Rosen 

Martin J. Bienenstock* 

Brian S. Rosen* 

Julia D. Alonzo* 

Eleven Times Square 

New York, NY 10036 

Telephone: (212) 969-3000 

Facsimile: (212) 969-2900 

Email: mbienenstock@proskauer.com 

 brosen@proskauer.com 

 jalonzo@proskauer.com 

* admitted pro hac vice 

Attorneys for the Financial Oversight and 

Management Board and as Representative of the 

Commonwealth

CORDOVA-AYUSO LAW OFFICE 

LLC

By: /s/ Lucas A. Córdova-Ayuso

Lucas A. Córdova-Ayuso, Esq. 

USDC-PR No. 226805 

P.O. BOX 194021 

San Juan, PR 00919-4021 

Tel.: (787) 230-0463 

Email: lac@calawpr.com

Counsel for Community Health Foundation 

of P.R. Inc. 

 

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