180821 ORD RE STIPULATION.DOCX VERSION AUGUST 21, 2018 1 

UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF PUERTO RICO 

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

In re: PROMESA 

 Title III 

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO, No. 17 BK 3283-LTS 

 (Jointly Administered) 

as representative of 

 

THE COMMONWEALTH OF PUERTO RICO, This Order relates to 

et al., 17 BK 3566-LTS and shall 

also be filed in the Case No. 

 17 BK 3566-LTS. 

Debtors.1 

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

In re: PROMESA 

 Title III 

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO, 

as representative of No. 17 BK 3566-LTS 

 

THE EMPLOYEES RETIREMENT SYSTEM 

OF THE GOVERNMENT OF THE 

COMMONWEALTH OF PUERTO RICO (ERS), 

 Debtor. 

----------------------------------------------------------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 (“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) (Title III case numbers are 

listed as Bankruptcy Case numbers due to software limitations). 

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180821 ORD RE STIPULATION.DOCX VERSION AUGUST 21, 2018 2 

ORDER

 On July 3, 2018, Movants2 filed the Motion of Certain Secured Creditors of the 

Employees Retirement System of the Government of the Commonwealth of Puerto Rico for Relief 

from the Automatic Stay (Docket Entry No. 3418 in Case No. 17 BK 3283-LTS and Docket 

Entry No. 289 in Case No. 17 BK 3566-LTS, the “Adequate Protection Motion”). 

 On July 10, 2018, (i) the Financial Oversight and Management Board for Puerto 

Rico (the “Oversight Board”) filed the Debtor’s Opposition to Motion of Certain Secured 

Claimholders of Employees Retirement System of Government of Commonwealth of Puerto Rico 

for Relief from Automatic Stay (Docket No. 3465 in Case No. 17-bk-03283 and Docket No. 292 

in Case No. 17-bk-03566); (ii) the Official Committee of Retired Employees of the 

Commonwealth of Puerto Rico (the “Retiree Committee”) filed the Objection of the Official 

Committee of Retired Employees of the Commonwealth of Puerto Rico to the ERS Bondholders’ 

Motion for Relief from the Automatic Stay (Docket No. 3468 in Case No. 17-bk-03283 and 

Docket No. 293 in Case No. 17-bk-03566); (iii) the American Federation of State, County and 

Municipal Employees (“AFSCME”) filed the Joinder of the American Federation of State, 

 

2

 Movants include Altair Global Credit Opportunities Fund (A), LLC; Andalusian Global 

Designated Activity Company; Glendon Opportunities Fund, L.P.; Mason Capital Master 

Fund LP; Nokota Capital Master Fund, L.P.; Oaktree-Forrest Multi-Strategy, LLC (Series 

B); Oaktree Opportunities Fund IX, L.P.; Oaktree Opportunities Fund IX (Parallel 2), 

L.P.; Oaktree Value Opportunities Fund, L.P.; Ocher Rose, L.L.C.; Puerto Rico AAA 

Portfolio Bond Fund, Inc.; Puerto Rico AAA Portfolio Bond Fund II, Inc.; Puerto Rico 

AAA Portfolio Target Maturity Fund, Inc.; Puerto Rico Fixed Income Fund, Inc.; Puerto 

Rico Fixed Income Fund II, Inc.; Puerto Rico Fixed Income Fund III, Inc.; Puerto Rico 

Fixed Income Fund IV, Inc.; Puerto Rico Fixed Income Fund V, Inc.; Puerto Rico 

GNMA & U.S. Government Target Maturity Fund, Inc.; Puerto Rico Investors Bond 

Fund I; Puerto Rico Investors Tax-Free Fund, Inc.; Puerto Rico Investors Tax-Free Fund 

II, Inc.; Puerto Rico Investors Tax-Free Fund III, Inc.; Puerto Rico Investors Tax-Free 

Fund IV, Inc.; Puerto Rico Investors Tax-Free Fund V, Inc.; Puerto Rico Investors TaxFree Fund VI, Inc.; Puerto Rico Mortgage-Backed & U.S. Government Securities Fund, 

Inc.; SV Credit, L.P.; Tax-Free Puerto Rico Fund, Inc.; Tax-Free Puerto Rico Fund II, 

Inc.; Tax-Free Puerto Rico Target Maturity Fund, Inc.; and UBS IRA Select Growth & 

Income Puerto Rico Fund. 

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180821 ORD RE STIPULATION.DOCX VERSION AUGUST 21, 2018 3 

County and Municipal Employees to (1) the Objection of the Official Committee of Retired 

Employees of the Commonwealth of Puerto Rico to the ERS Bondholders’ Motion for Relief from 

the Automatic Stay and (2) Debtor’s Opposition to Motion of Certain Secured Claimholders of 

Employees Retirement System of Government of Commonwealth of Puerto Rico for Relief from 

Automatic Stay (Docket No. 3467 in Case No. 17-bk-03283 and Docket No. 294 in Case No. 17-

bk-03566); and (iv) the Official Committee of Unsecured Creditors of all Title III Debtors filed 

the Joinder of the Official Committee of Unsecured Creditors to Debtor’s and Retiree 

Committee’s Objections to Motion of Certain Secured Creditors of Employees Retirement System 

of Government of Commonwealth of Puerto Rico for Relief from Automatic Stay (Docket No. 

3470 in Case No. 17-bk-03283 and Docket No. 296 in Case No. 17-bk-03566). 

 On July 17, 2018, Movants filed the Reply of Certain Secured Creditors of the 

Employees Retirement System of the Government of the Commonwealth of Puerto Rico in 

Support of Motion for Relief from the Automatic Stay (Docket No. 3592 in Case No. 17-bk03283 and Docket No. 303 in Case No. 17-bk-03566). 

 On August 6, 2018, the Court entered the Order Scheduling Certain Deadlines 

with Respect to the Motion of Certain Secured Creditors of the Employees Retirement System for 

Relief from the Automatic Stay (Docket No. 313 in Case No. 17 BK 3566-LTS and Docket No. 

3747 in Case No. 17 BK 3283-LTS, the “August 6 Order”). 

 On August 17, 2018, the Court issued the Opinion and Order Granting and 

Denying in Part Cross Motions for Summary Judgment (the “August 17 Order”) finding that 

Movants’ liens are unperfected (Docket No. 215 in Adv. Proc. No. 17-00213). 

 The August 17 Order resolves the Adequate Protection Motion. 

 It is hereby ORDERED that: 

1. The Adequate Protection Motion is DENIED on the ground that the August 17 

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180821 ORD RE STIPULATION.DOCX VERSION AUGUST 21, 2018 4 

Order resolves it; 

2. This Order is without prejudice to Movants’ right to appeal this Order and the 

August 17 Order on any grounds and without prejudice to the Oversight Board, on behalf of ERS, 

and the Retiree Committee opposing any appeal on any grounds; 

3. This resolves the August 6 Order; 

4. All parties’ rights are reserved in full; and 

5. Each party shall bear its own costs and attorneys’ fees. 

 SO ORDERED. 

Dated: August 21, 2018 

 /s/ Laura Taylor Swain 

 LAURA TAYLOR SWAIN

 United States District Judge 

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