Hearing Date: July 25, 2018 at 9:30 a.m. (AST) 

IN THE UNITED STATES DISTRICT COURT 

FOR THE 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 

(Jointly Administered) 

REPLY IN SUPPORT OF URGENT MOTION TO COMPEL THE 

PUERTO RICO DEPARTMENT OF TREASURY 

TO COMPLY WITH THE FIRST AND SECOND AMENDED ORDERS 

SETTING PROCEDURES FOR INTERIM COMPENSATION AND 

REIMBURSEMENT OF EXPENSES OF PROFESSIONAL

The Official Committee of Retired Employees of the Commonwealth of Puerto Rico (the 

“Retiree Committee”), respectfully files this reply (the “Reply”) in support of the the Retiree 

Committee’s urgent motion (“Motion”) for entry of an order directing the Puerto Rico Department 

of Treasury, part of the Commonwealth’s central government (“Hacienda”) 2 to comply with this 

Court’s First Amended Order Setting Procedures for Interim Compensation and Reimbursement 

 

1 The Debtors in these jointly-administered PROMESA 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: (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) (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 and Power Authority (Bankruptcy Case No. 17 BK 4780) (Last 

Four Digits of Federal Tax ID: 3747). 

2 Hacienda is represented by counsel to AAFAF. 

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of Expenses of Professionals [Dkt. No. 1715] (the “First Amended Interim Compensation 

Order”) and the Second Amended Order Setting Procedures for Interim Compensation and 

Reimbursement of Expenses of Professionals [Dkt. No. 3269] (the “Second Amended Interim 

Compensation Order, together with the First Amended Interim Compensation Order, the 

“Interim Compensation Orders”). 

1. The Retiree Committee filed the Motion on July 13, 2018.3 [Dkt. 3513.] In the 

Motion, the Retiree Committee sought entry of an Order: (a) directing Hacienda to comply with 

the Interim Compensation Orders and to pay to the Retiree Committee’s Professionals, on or before 

July 31, 2018, all fees and expenses due under the Interim Compensation Orders; and (b) directing 

Hacienda to remit the withholdings erroneously applied to the stateside Retiree Committee’s 

Professionals and Marchand on or before July 31, 2018. 

2. Since filing the Motion, the Retiree Committee Professionals have received partial 

payments of various past-due amounts. As set forth in the Supplement to the Motion, the Retiree 

Committee Professionals provided Hacienda with updated schedules of all amounts currently due. 

[Dkt. 3649.] The Retiree Committee Professionals have been engaged in dialogue with Hacienda 

and its counsel through the filing of this Reply. The Retiree Committee Professionals are advised 

by Hacienda that the Retiree Committee Professionals should receive wire transfers today for the 

payment of fees and expenses due under the Interim Compensation Orders. Based on the amount 

of the expected wire transfers, however, it appears that Hacienda has continued to erroneously 

withhold certain amounts from those expected payments. 

3. The Retiree Committee Professionals are continuing to engage Hacienda and its 

counsel in an effort to resolve the erroneous amounts withheld from prior payments and have been 

 

3 Capitalized words used herein and not defined shall have the meaning given to them in the Motion. 

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doing so for several months. Indeed, Jenner & Block and FTI Consulting submitted formal requests 

to Hacienda for withholdings refunds on June 7, 2018, and have provided copies of those requests 

to counsel for AAFAF. 

4. The Retiree Committee Professionals will continue to work with Hacienda and its 

counsel to resolve the issues presented in the Motion, but due to the amounts that remain 

outstanding and the fact that the Retiree Committee Professionals have not yet received the 

anticipated wires, the Retiree Committee submits that the Motion should go forward as scheduled 

for the July 25, 2018 omnibus hearing date. 

July 23, 2018 

JENNER & BLOCK LLP 

By: 

/s/ Robert Gordon 

Robert Gordon (admitted pro hac vice) 

Richard Levin (admitted pro hac vice) 

919 Third Ave 

New York, NY 10022-3908 

rgordon@jenner.com 

rlevin@jenner.com 

212-891-1600 (telephone) 

212-891-1699 (facsimile) 

Catherine Steege (admitted pro hac vice) 

Melissa Root (admitted pro hac vice) 

353 N. Clark Street 

Chicago, IL 60654 

csteege@jenner.com 

mroot@jenner.com 

312-222-9350 (telephone) 

312-239-5199 (facsimile) 

Respectfully submitted, 

BENNAZAR, GARCÍA & MILIÁN, C.S.P. 

By: 

/s/ A.J. Bennazar-Zequeira 

A.J. Bennazar-Zequeira 

Héctor M. Mayol Kauffmann 

Edificio Union Plaza, 1701 Avenida Ponce de 

León #416 

Hato Rey, San Juan 

Puerto Rico 00918 

ajb@bennazar.org 

hector.mayol@bennazar.com 

787-754-9191 (telephone) 

787-764-3101 (facsimile) 

Counsel for The Official Committee of Retired 

Employees of Puerto Rico

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