EXHIBIT 23 

Case:17-03283-LTS Doc#:3126-23 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

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1

 IN THE UNITED STATES DISTRICT COURT

 FOR THE DISTRICT OF PUERTO RICO

In Re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO,

 

as representatives of 

THE COMMONWEALTH OF PUERTO RICO, 

et al, 

Debtors. 

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No. 17 BK 3283-LTS

Pages 1 - 58 

December 14, 2017 

 HEARING

BEFORE THE HONORABLE JUDITH GAIL DEIN

UNITED STATES MAGISTRATE JUDGE

 

United States District Court 

1 Courthouse Way, Courtroom 8 

Boston, Massachusetts 02210

 JOAN M. DALY 

 OFFICIAL COURT REPORTER

 United States District Court 

 1 Courthouse Way, Room 5507 

 Boston, MA 02210

 joanmdaly62@gmail.com

Case:17-03283-LTS Doc#:3126-23 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

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A P P E A R A N C E S:

GARY ORSECK, ESQ., and KATHERYN ZECCA, ESQ., Robbins 

Russell, for GO Bondholders.

 PETER FRIEDMAN, ESQ., and ASHLEY PAVEL, ESQ., O'Melveny & 

Myers, for AAFAF.

TIMOTHY W. MUNGOVAN, ESQ., GREGG M. MASHBERG, ESQ., and 

CARL FORBES, JR., ESQ., Proskauer Rose, for the Financial 

Oversight and Management Board for Puerto Rico (FOMB).

ELLEN HALSTEAD, ESQ., Cadwalader, Wickersham & Taft, for 

Assured Guaranty. 

CHRISTOPHER DiPOMPEO, ESQ., Jones Day, for ERS Secured 

Creditors.

RICHARD LEVIN, ESQ., Jenner & Block, for Official 

Committee of Retired Employees.

SHANNON WOLF, ESQ., Bracewell LLP, for QTCB Noteholder 

Group.

LUC DESPINS, ESQ., Paul Hastings, for UCC.

MARTIN SOSLAND, ESQ., Butler Snow, LLP, for Financial 

Guaranty Insurance Company.

GREGORY A. HOROWITZ, ESQ., Kramer Levin Naftalis & 

Frankel, for The Mutual Fund Group. 

ERIC WEISS, ESQ., Milbank, Tweed, Hadley & McCloy, for 

Ambac. 

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46

there's a deposition or something? 

MR. ORSECK: No. That's different. That's 

Dr. Wolfe which they have produced. Excuse me. 

The materials that I'm talking about they have 

placed in category four which is to say we would not be able 

to use it, which to me is the same point. 

So on the use issue, Judge, to circle back, we are 

in agreement in principle on the first two categories. On 

the third category we're also in agreement in principle so 

long as what they are holding within the mediation folder in 

the data room are materials that relate only to the mediation 

and are in the underlying factual materials. 

Where we disagree are as to materials that underlie 

the old fiscal plan and the new fiscal plan. We think that 

they are both discoverable under 2004. And to the extent 

they want to assert deliberative process privilege, they 

should just go ahead and assert it. 

The last thing I want to do is touch on a couple of 

the specific requests that are outstanding. Most of these 

they've said that they will continue to look for materials. 

We've asked for a response in a week as to where they stand 

on these. They've asked to do it a bit later than that. But 

the one I want to raise -- 

We had a request that asked for all documents that 

identify what they have defined as essential services. Under 

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PROMESA there is a requirement to fund essential services. 

And they have at times taken the position that essential 

services come before payment of the debt to GO Bondholders. 

So we have asked them identify what the essential services 

are in the fiscal plan or any other discussion or 

identification of what are essential services. 

We were told in a meet and confer, and if counsel 

will confirm this, we will deem request number 12 to be 

satisfied, but we were told that they are unaware of any such 

documents that identify essential services or define 

essential services either that were provided to the Oversight 

Board or that have been used or relied upon in connection 

with the formulation of any draft or final fiscal plan. 

If they will make that representation, then we deem 

that request satisfied. I think the rest remain to be worked 

out as to what they will and won't produce as to by when and 

the question of use and whether deliberative process must be 

logged or not. 

MR. FRIEDMAN: Peter Friedman from AAFAF, Your 

Honor. I will say with respect to the last issue, number 12, 

that is my understanding with respect to essential services. 

We will continue to look. If we identify something that 

falls into the category of -- so I view it as part of a 

continuing obligation on our part to look to see if there are 

documents about essential services that have been provided to 

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the FOMB by AAFAF or used or relied upon in connection with 

the formulation of a fiscal plan. I'm not aware of it. 

We've made inquiries. We will keep looking. And if it turns 

out, I understand we have an obligation to produce. I have 

made a representation based on my current understanding and 

our firm's understanding based on reasonable increase, we'll 

keep looking. 

THE COURT: So as I understand, I have a decision 

as between December 22 and January 5 on when you're 

reporting? 

MR. ORSECK: I think that's right. 

THE COURT: I'll give you January 5 if you want to 

wreck your holidays. I don't have a problem with that. 

MR. MUNGOVAN: Your Honor, can I just be heard at 

the podium with respect to one item? 

THE COURT: Yes. 

MR. MUNGOVAN: Your Honor, Timothy Mungovan for the 

Oversight Board. What is it specifically that we're supposed 

to be reporting on for January 5? 

THE COURT: Are you asking me? As I understood it 

from the papers, that was your agreement as to when you were 

going to report on what you had been searching for, and they 

wanted you to give them a status report as of December 22. 

You wanted to give a status report as of January 5. 

MR. MUNGOVAN: That's right, Your Honor. 

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 - - - - - - - - - - - -

 CERTIFICATION

I certify that the foregoing is a correct 

transcript of the record of proceedings in the above-entitled 

matter to the best of my skill and ability.

/s/ Joan M. Daly December 15, 2017

______________________ ____________________

Joan M. Daly, RMR, CRR Date

Official Court Reporter 

Case:17-03283-LTS Doc#:3126-23 Filed:05/23/18 Entered:05/23/18 11:45:37 Desc:

Exhibit 2004 Hearing Transcript Excerpts Page 7 of 7