Exhibit H

Case:17-03283-LTS Doc#:3961-9 Filed:09/21/18 Entered:09/21/18 21:28:34 Desc:

Exhibit H to Declaration Page 1 of 8
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#89666530v1 

FOR IMMEDIATE RELEASE 

THE GOVERNMENT DEVELOPMENT BANK FOR PUERTO RICO REACHES 

AGREEMENT FOR TITLE VI RESTRUCTURING WITH ITS MAJOR 

CREDITORS 

(May 15, 2017 - San Juan) Puerto Rico’s Governor Ricardo Rosselló Nevares announced that the Fiscal 

Agency and Financial Advisory Authority (AAFAF, for its Spanish acronym), and the Government 

Development Bank of Puerto Rico (GDB) have entered into a restructuring support agreement (RSA) with 

a significant portion of the GDB’s major stakeholders. Pursuant to Title VI of the Puerto Rico Oversight, 

Management, and Economic Stability Act (PROMESA), the RSA terms will be consummated pursuant to 

a Title VI consensual restructuring plan for GDB. Once approved by the requisite creditors of GDB, the 

Financial Oversight and Management Board for Puerto Rico and the United States District Court for the 

District of Puerto Rico, the plan as implemented will provide for GDB’s financial creditors, including 

holders of bonds and depositors, to exchange their claims against GDB for one of three tranches of bonds 

issued by a new municipal entity, at each creditor’s election. The tranches of new bonds will have varying 

principal amounts, interest rates, collateral priority, and other payment terms. GDB’s financial creditors 

have agreed to substantial discounts to principal and the restructuring does not depend on any funds from 

the Commonwealth’s general fund. The RSA also contemplates a cash payment to Puerto Rico’s 

municipalities on account of certain accounts at GDB.

 “This transaction is the result of extensive, good faith negotiations and underscores the Administration’s 

committed policy of reaching consensual agreements with creditors,” emphasized Gerardo Portela Franco, 

Executive Director of AAFAF. 

“On behalf of AAFAF and the Administration, I want to express my gratitude to GDB and its major 

constituents for working tirelessly to reach a consensual deal. The successful restructuring of GDB’s 

obligations as provided for in the RSA represents significant progress in Puerto Rico’s economic 

recovery,” added Portela.

The RSA has been negotiated by representatives of, and approved by (among others), (i) the Ad Hoc 

Group of Bondholders, comprised of funds managed or advised by Avenue Capital Management II, L.P., 

Brigade Capital Management, LP, Fir Tree Partners and Solus Alternative Asset Management LP, 

(ii) credit cooperativas of Alianza de Cooperativistas (Alianza) and of Grupo ES (which together are 

composed of more than 40 credit cooperativas) and (iii) Bonistas del Patio.

AAFAF and GDB were assisted in the negotiations by O’Melveny & Myers LLP, as legal advisor, 

Rothschild & Co., as investment banker, Ankura Consulting Group, as financial advisor, and Bank of 

America Merill Lynch, as dealer manager. The Ad Hoc Group of Bondholders was assisted in the 

negotiations by Davis, Polk & Wardwell LLP, as legal advisor, and Ducera Partners LLC, as financial 

advisor. Atlas Asset Management, LLC is the financial advisor to both Alianza and Grupo ES. Marichal, 

Hernández, Santiago & Juarbe, LLC are attorneys for Grupo ES, González Torres & Co., CPA, PSC are 

accounting advisors for Alianza and HRML & Asociados, LLC and Nevares, Sánchez Alvarez and Cancel, 

PSC are legal counsel for Alianza. Bonistas del Patio was advised by Pico & Blanco, LLC, as legal 

advisor, and Jorge Irizarry and Carlos Rodriguez as financial advisors.

Case:17-03283-LTS Doc#:3961-9 Filed:09/21/18 Entered:09/21/18 21:28:34 Desc:

Exhibit H to Declaration Page 2 of 8
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#89666530v1 

###

Contact: 

Elliot Rivera 

Press Official 

Fiscal Agency and Financial Advisory Authority 

(787) 313-5111 

Yennifer Álvarez 

Press Secretary 

La Fortaleza 

(787) 610-0202 

Case:17-03283-LTS Doc#:3961-9 Filed:09/21/18 Entered:09/21/18 21:28:34 Desc:

Exhibit H to Declaration Page 3 of 8
Governor Announces Restructuring Agreement

Home > Press Releases > Governor Announces Restructuring Agreement 

Governor Ricardo Rosselló

(May 15, 

2017 – 

San Juan, 

Puerto 

Rico)

Governor 

Ricardo 

Rosselló 

announced 

that the 

Puerto 

Rico Fiscal Agency and Financial Advisory Authority (AAFAF, 

for its Spanish acronym) and the Government Development 

Bank of Puerto Rico (GDB) have entered into a restructuring 

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Governor Announces Restructuring Agreement – Office of the Governor of Puerto Rico Page 1 of 5

http://prfaa.pr.gov/governor-announces-restructuring-agreement/ 9/21/2018

Case:17-03283-LTS Doc#:3961-9 Filed:09/21/18 Entered:09/21/18 21:28:34 Desc:

Exhibit H to Declaration Page 4 of 8
Pursuant to Title VI of the Puerto Rico Oversight, Management, 

and Economic Stability Act (PROMESA), the RSA terms will be 

implemented pursuant to a Title VI consensual restructuring 

plan for GDB.

Once approved by the requisite creditors of GDB, the Financial 

Oversight and Management Board for Puerto Rico and the 

United States District Court for the District of Puerto Rico, the 

plan as implemented will provide for GDB’s financial creditors, 

including holders of bonds and depositors, to exchange their 

claims against GDB for one of three tranches of bonds issued 

by a new municipal entity, at each creditor’s election.

These new bonds will have varying principal amounts, interest 

rates, collateral priority, and other payment terms. As part of 

the terms of the RSA, GDB’s financial creditors have agreed to 

substantial discounts to the principal.

The restructuring does not depend on any funds from the 

Commonwealth’s general fund. The RSA also contemplates a 

cash payment to Puerto Rico’s municipalities that hold 

accounts in the GDB.

This agreement comes after the RSA already achieved by the 

AAFAF, representing the Puerto Rico Electric Power Authority 

(PREPA), the Ad Hoc Group of PREPA bondholders, suppliers 

of fuel credit lines, monoline insurers and the Economic 

Development Bank of Puerto Rico, which achieved savings of 

$ 2.2 billion for the people of Puerto Rico.

The RSA for the GDB has been negotiated by representatives 

of, and approved by (among others): (i) the Ad Hoc Group of 

Bondholders, comprised of funds managed or advised by 

Avenue Capital Management II, L.P., Brigade Capital 

Management, LP, Fir Tree Partners and Solus Alternative 

Asset Management LP, (ii) credit cooperatives of Alianza de 

Cooperativistas (Alianza) and of Grupo ES (which together are 

Servicios Agencias

Governor Announces Restructuring Agreement – Office of the Governor of Puerto Rico Page 2 of 5

http://prfaa.pr.gov/governor-announces-restructuring-agreement/ 9/21/2018

Case:17-03283-LTS Doc#:3961-9 Filed:09/21/18 Entered:09/21/18 21:28:34 Desc:

Exhibit H to Declaration Page 5 of 8
Governor Rosselló thanked the AAFAF, the GDB, and the 

creditors who achieved this agreement for their commitment 

during two months of work and negotiations in good faith.

“This agreement is an example that the Government is 

regaining the credibility it had lost over the past few years. We 

are satisfied with this agreement that will result in the best 

interests of the people of Puerto Rico,” expressed the 

Governor.

Likewise, Gerardo Portela, AAFAF’s executive director, said 

that “this transaction is the result of extensive, good faith 

negotiations and underscores the Administration’s committed 

policy of reaching consensual agreements with creditors.”

“On behalf of AAFAF and the Administration, I want to express 

my gratitude to GDB and its major constituents for working 

tirelessly to reach a consensual deal. The successful 

restructuring of GDB’s obligations as provided for in the RSA 

represents significant progress in Puerto Rico’s economic 

recovery,” added Portela.

Meanwhile, the Ad Hoc Group of GBD Bondholders said “that it 

is pleased to be participating in the Restructuring Support 

Agreement.”

Bradley Meyer of Ducera Partners, financial advisor to the Ad 

Hoc Group, said that “despite the difficulty and complexity of 

the negotiations, GDB, AAFAF and the current administration 

have worked with stakeholders, including the Ad Hoc Group, 

the Bonistas del Patio and participating Cooperativas, in a 

responsible, transparent and collaborative manner to reach 

agreement on a voluntary restructuring of GDB that is fair to all 

parties. The Ad Hoc Group looks forward to the completion of 

definitive documentation and the prompt implementation of the 

RSA under Title VI of Promesa.”

Servicios Agencias

Governor Announces Restructuring Agreement – Office of the Governor of Puerto Rico Page 3 of 5

http://prfaa.pr.gov/governor-announces-restructuring-agreement/ 9/21/2018

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Exhibit H to Declaration Page 6 of 8
 May 15, 2017 at 2:14 pm  Press Releases 

sustain significant losses, up to 45 percent of the savings that 

Puerto Ricans worked for, it is because we are Puerto Ricans 

first, and we recognize the circumstances in which Puerto Rico 

is today.”

He added that “the transaction announced today achieves a 

fair and reasonable agreement for local bondholders that will 

allow them to recover a significant portion of their invested 

principal by understanding the circumstances of the GDB.”

Meanwhile, the Alianza de Cooperativas held that “it is 

important to highlight the transparency of the Government by 

opening the GDB books without reservations, as well as 

offering and explaining the details necessary to reach this 

agreement.”

“This agreement adds to the necessary determinations to 

continue protecting the assets and continue to develop 

cooperativism on the Island,” added the Alianza de 

Cooperativas.

AAFAF and GDB were assisted in the negotiations by 

O’Melveny & Myers LLP, as legal advisor, Rothschild & Co., as 

investment banker, Ankura Consulting Group, as financial 

advisor, and Bank of America Merill Lynch, as dealer manager. 

The Ad Hoc Committee of Bondholders was assisted in the 

negotiations by Davis, Polk & Wardwell LLP, as legal advisor, 

and Ducera Partners LLC, as financial advisor. Atlas Asset 

Management, LLC is the financial advisor to both Alianza and 

Grupo ES. Marichal, Hernández, Santiago & Juarbe, LLC are 

attorneys for Grupo ES, González Torres & Co., CPA, PSC are 

accounting advisors for Alianza and HRML & Asociados, LLC 

and Nevares, Sánchez Alvarez and Cancel, PSC are legal 

counsel for Alianza. Bonistas del Patio was advised by Pico & 

Blanco, LLC, as legal advisor, and Jorge Irizarry and Carlos 

Rodriguez as financial advisors.

Servicios Agencias

Governor Announces Restructuring Agreement – Office of the Governor of Puerto Rico Page 4 of 5

http://prfaa.pr.gov/governor-announces-restructuring-agreement/ 9/21/2018

Case:17-03283-LTS Doc#:3961-9 Filed:09/21/18 Entered:09/21/18 21:28:34 Desc:

Exhibit H to Declaration Page 7 of 8
GOVERNMENT OF PUERTO RICO 

Servicios Agencias

Governor Announces Restructuring Agreement – Office of the Governor of Puerto Rico Page 5 of 5

http://prfaa.pr.gov/governor-announces-restructuring-agreement/ 9/21/2018

Case:17-03283-LTS Doc#:3961-9 Filed:09/21/18 Entered:09/21/18 21:28:34 Desc:

Exhibit H to Declaration Page 8 of 8