reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter I - General Provisions (§§ 111 — 111jj) › § 111hh - Appointment of Emergency Manager

The Governor may, at any time during the suspension period under §§ 112-112f of this title or during the pendency of a case under §§ 113-113nn of this title, appoint an emergency manager for the eligible obligor or petitioner, as applicable. The Governor may choose any individual to serve as emergency manager, including, without limitation, a current or former officer of the eligible obligor or petitioner. The Governor may empower the emergency manager to oversee multiple eligible obligors or petitioners simultaneously or sequentially. The emergency manager shall subject to the applicable provisions and obligations entered into pursuant to §§ 9101 et seq. of Title 3:
(a) Exclusively possess and exercise all powers of the governing body and the principal executive officer of the eligible obligor or petitioner, as applicable, and the powers of the existing governing body of the eligible obligor or petitioner shall be suspended during the emergency manager’s tenure;
(b) report periodically to such governing body regarding the operations of the eligible obligor or petitioner, as applicable, the progress of the restructuring process under §§ 112-112f of this title or prosecution of the petitioner’s plan under §§ 113-113nn of this title, and the governing body may provide advice to the emergency manager;
(c) report to the Governor, the Legislative Assembly and GDB upon request;
(d) serve:
(1) During the suspension period and may continue serving for a period of up to three (3) months after entry of the approval order, which period may be extended for three (3) additional months by the Governor or as otherwise provided for in the recovery program;
(2) during the §§ 113-113nn of this title case, unless and until replaced by the Governor, and shall continue serving for a period of three (3) months after the effective date of the plan, which period may be extended for three (3) additional months by the Governor; or
(3) until the Governor, in his absolute discretion, determines; provided, however, that the periods set forth in clauses (1) and (2) of this subsection shall not be exceeded; and
(e) be compensated by the eligible obligor or petitioner, as applicable, according to terms of employment approved by the Governor with advice of GDB.
History —June 28, 2014, No. 71, § 135.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter I - General Provisions (§§ 111 — 111jj) › § 111ii - Ongoing operations

(a) During the suspension period under §§ 112-112f of this title or the pendency of a case under §§ 113-113nn of this title, an eligible obligor or petitioner, as applicable, shall (1) operate the enterprise and make all personnel and other business determinations during the suspension period or the pendency of a case under §§ 113-113nn of this title, in each case in accordance with applicable law, (2) remain in possession and control of its assets and, (3) subject to §§ 113f and 113v of this title, shall be authorized to use and transfer such assets without Court approval.
(b) The Governor may at any time, on an interim basis during the suspension period or during the pendency of a case under §§ 113-113nn of this title, appoint new members of the governing body of any eligible obligor or petitioner, as applicable, with the advice and consent of the Senate, to substitute for some or all of those existing members of the governing body who had been appointed by the Governor.
(c) The Governor may exercise either, both, or neither of the powers granted by subsection (b) of this section and § 111hh of this title, sequentially or simultaneously, as the case may be.
History —June 28, 2014, No. 71, § 136.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter I - General Provisions (§§ 111 — 111jj) › § 111jj - Quasi-immunity of the eligible obligor and the petitioner, creditors’ committee personnel, and government officials

(a) Except to the extent proven by final and unappealable judgment, to have engaged in willful misconduct for personal gain or gross negligence comprising reckless disregard of and failure to perform applicable duties, the enumerated entities shall not have any liability to any entity for, and without further notice or order shall be exonerated from, actions taken or not taken in their capacity, and within their authority in connection with, related to, or arising under, or as permitted under this chapter.
(b) No action shall be brought against any enumerated entity concerning its acts or omissions in connection with, related to, or arising under this chapter, except in the Court. No civil cause of action may arise against and no civil liability may be imposed on such enumerated entities absent clear and convincing proof of willful misconduct for personal gain or gross negligence comprising reckless disregard of and failure to perform applicable duties. Any action brought for gross negligence shall be dismissed with prejudice if a defendant, as an officer, director, official, committee member, professional, or other enumerated entity, produces documents showing such defendant was advised of relevant facts, participated in person or by phone, and deliberated in good faith or received and relied on the advice of experts in respect of whatever acts or omissions form the basis of the complaint.
History —June 28, 2014, No. 71, § 137.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter II - Consensual Debt Relief (§§ 112 — 112f) › § 112 - Consensual debt relief transactions

(a) The objectives of §§ 112-112f of this title are the following:
(1) To enable an eligible obligor to become financially self-sufficient;
(2) to allocate equitably among all stakeholders the burdens of the recovery program; and
(3) to provide the same treatment to all creditors within a class of affected debt instruments unless a creditor agrees to a less favorable treatment.
(b) An eligible obligor may seek debt relief from its creditors pursuant to one or more transactions in accordance with §§ 112-112f of this title (each a “consensual debt relief transaction”) if so authorized by either:
(1) Its governing body, with the approval of GDB; or
(2) GDB, at the Governor’s request, and on behalf of the eligible obligor, if the eligible obligor has not authorized such action and the Governor, with the advice of GDB, determines that it is in the best interest of the eligible obligor and the Commonwealth.
(c) To enable GDB to coordinate the relief requested in instances where the Governor and GDB authorize the consensual debt relief transaction, GDB shall be entitled to select and retain on behalf of the eligible obligor and at the eligible obligor’s expense, such professionals as GDB believes are necessary to seek relief under §§ 112-112f of this title.
(d) After the eligible obligor obtains authorization pursuant to subsection (b) of this section, the eligible obligor shall publish on its website a notice that:
(1) The suspension period has commenced on the date of such notice; and
(2) identifies which obligations are subject to the suspension period.
(e) The suspension period notice may be amended to add or eliminate obligations, but the suspension period shall commence only from the time the suspension period notice is first published pursuant to subsection (d) of this section.
History —June 28, 2014, No. 71, § 201.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter II - Consensual Debt Relief (§§ 112 — 112f) › § 112b - Oversight Commission

(a) An oversight commission shall be established for each eligible obligor that is subject to a recovery program no later than ten (10) days after entry of the approval order. The identity and affiliation(s) of the persons who will serve on the oversight commission shall be disclosed publicly prior to the commencement of the approval hearing. Such oversight commission shall be responsible for monitoring compliance with the recovery program. The eligible obligor subject to the recovery program shall provide the oversight commission with regular updates, not less frequently than once every four (4) months, of its compliance with terms of the recovery program.
(b) If the oversight commission, by majority vote, finds that an eligible obligor has failed to meet an interim performance target or other milestone contained in the recovery program and such failure has continued for at least ninety (90) days thereafter, the oversight commission shall issue a non-compliance finding to the eligible obligor, the Governor and to the Legislative Assembly, with a copy to be made available publicly, explaining the reasons for such non-compliance and making recommendations for curing such non-compliance. Such recommendations may include the replacement of some or all of the management or the governing body of the eligible obligor.
History —June 28, 2014, No. 71, § 203.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter II - Consensual Debt Relief (§§ 112 — 112f) › § 112c - Court approval of consensual debt relief transactions

(a) Any eligible obligor seeking entry of an approval order shall file an application with the Court requesting such approval not later than thirty (30) days after obtaining the requisite consent of holders of an affected debt instrument set forth in subsection (d)(2) of § 112a of this title.
(b) The Court shall conduct a hearing to consider entry of the approval order not later than twenty-one (21) days after the filing of the application.
(c) Notwithstanding any contractual provision or applicable law to the contrary, notice of the hearing described in subsection (b) of § 112c of this title shall be proper and reasonable if:
(1) Publication notice of such hearing is made in accordance with subsection (c)(2) of § 111o of this title; and
(2) notice of such hearing is transmitted to the holders of the affected debt instruments at least fourteen (14) days prior to such hearing, including through The Depository Trust Company or similar depository, or as the Court otherwise orders.
(d) Subject to the terms and conditions of the affected debt instrument (including any limitations on suits prescribed therein), any holder of an affected debt instrument may object to the relief sought in subsection (a) of this section by filing an objection in accordance with § 111s of this title; Provided, however, That no entity may object if it is not adversely impacted by the actions taken in connection with this chapter.
(e) In determining whether an approval order shall be entered, the Court shall consider only whether the amendments, modifications, waivers, or exchanges, as the case may be, proposed in such transaction, are consistent with the requirements of §§ 112-112f of this title and the objectives set forth in § 112(a) of this title, and whether the voting procedure followed in connection with the consensual debt relief transaction, which shall include a reasonable notice and period of time to vote or consent as the circumstances require, was carried out in a manner consistent with §§ 112-112f of this title. If the Court determines that each of these requirements has been satisfied, it shall enter the approval order.
History —June 28, 2014, No. 71, § 204.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter II - Consensual Debt Relief (§§ 112 — 112f) › § 112e - Obtaining credit

(a) After the commencement of the suspension period, an eligible obligor may obtain credit in the same manner and on the same terms as a petitioner pursuant to § 113u of this title.
(b) Prior to or after the filing of an application for an approval order pursuant to § 112c of this title, the eligible obligor may, to the extent required by any entity seeking to extend credit pursuant to subsection (a), seek from the Court, after notice and a hearing, an order approving and authorizing it to obtain such credit.
(c) Credit obtained pursuant subsection (a) of this section may not be treated as an affected debt instrument under §§ 112-112f of this title or as affected debt under §§ 113-113nn of this title or avoided as a fraudulent transfer.
(d) If the eligible obligor subsequently seeks relief under §§ 113-113nn of this title, the credit extended pursuant to this section shall be entitled to same priority and security as if such credit had been extended in a case under §§ 113-113nn of this title.
(e) Subsection (e) of § 113u of this title shall apply to any order entered pursuant to subsection (b) of this section.
History —June 28, 2014, No. 71, § 206.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter II - Consensual Debt Relief (§§ 112 — 112f) › § 112f - Adequate protection for use of property subject to lien or pledge

(a) To continue performing its public functions and to obtain an approval order or consummate a consensual debt relief transaction, the eligible obligor may use property, including cash collateral, subject to a lien, pledge, or other interest of or for the benefit of an entity; Provided, That the entity shall be entitled to a hearing, upon notice, to consider a request for adequate protection of its lien, pledge, or other interest as promptly as the Court’s calendar permits, at which hearing the Court may condition the use of the collateral on such terms, if any, as it determines necessary to adequately protect such interest.
(b) Notwithstanding anything to the contrary in this chapter, if revenues of an eligible obligor are subject to a pledge under which current expenses or operating expenses may be paid prior to the payment of principal, interest or other amounts owed to a creditor, the eligible obligor shall not be required to provide adequate protection pursuant to this section, to the extent that sufficient revenues are unavailable for payment of such principal, interest or other amounts after full payment of such current expenses or operating expenses.
(c) If the entity holding a lien, pledge, or interest in the collateral consents to its use, then the entity shall be deemed adequately protected on the terms, if any, in the consent and no further adequate protection shall be required.
History —June 28, 2014, No. 71, § 207.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113 - The Petition

(a) A case is commenced under §§ 113-113nn of this title by the filing of a petition with the Court, either:
(1) By a petitioner upon the decision of its governing body and approval of GDB; or
(2) by GDB, upon the Governor’s request, on behalf of a petitioner, if the petitioner’s governing body has not authorized the petition and GDB determines that the petition is in the best interests of the petitioner and the Commonwealth.
(b) To enable GDB to coordinate the relief requested in all cases filed under §§ 113-113nn of this title, GDB shall be entitled to select and retain financial and legal professionals to prosecute each §§ 113-113nn of this title case on behalf of the petitioner and at the petitioner’s expense, subject to §§ 111x and 111gg of this title.
(c) A case may not be commenced under §§ 113-113nn of this title by any involuntary petition of creditors or other entities.
(d) The petition shall set forth:
(1) The amounts and types of claims against the petitioner that the petitioner, subject to amendment, contemplates being affected under the plan, sufficient to enable the Court to form a general committee pursuant to subsection (a) of § 113q of this title; Provided, That if the schedule in subsection (a)(2) of § 113a of this title is filed with the petition, such schedule will satisfy the requirement in this clause (1); and
(2) the assessment of the entity filing the petition pursuant to clause (1) or (2) of subsection (a) of this section that the petitioner meets the eligibility requirements provided in subsection (b) of § 111l of this title.
History —June 28, 2014, No. 71, § 301.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113a - Petition filing requirements

(a) A petitioner shall file with the petition for relief under §§ 113-113nn of this title, or as soon as practicable thereafter, or if the petition is filed pursuant to § 113(a)(2) of this title, no more than sixty (60) days after the date the petition is filed:
(1) A list of creditors the petitioner or GDB intends to be affected creditors and for whom the petitioner has readily accessible internal electronic records of names and mailing addresses or email addresses; and
(2) a schedule of all the claims against the petitioner, which existed on the date the petition was filed, intended to be affected under the plan, showing:
(A) The amounts outstanding as of the date the petition is filed;
(B) any seniorities or priorities among such claims;
(C) the collateral security, including pledges of revenues, for each claim;
(D) which of such claims the petitioner acknowledges as allowed and which claims the petitioner disputes or contends are contingent or unliquidated; and
(E) the essential supplier contracts.
(b) A petitioner may amend its list of affected creditors and schedule of claims at any time (1) up to five (5) days before the deadline to object to a transfer of all or substantially all of the petitioner’s assets or (2) before the voting record date established by the Court, and shall provide notice of such amendments to all creditors affected by such amendments.
History —June 28, 2014, No. 71, § 302.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113b - Notice of commencement

(a) Promptly after the filing of the petition and obtaining a date from the Court for the hearing specified in subsection (a)(2) of this section, a petitioner shall send to all the petitioner’s affected creditors and contract counterparties for whom it has readily accessible internal electronic records of mailing addresses or email addresses and to all entities who file notices of appearance pursuant to § 111r of this title, notice of:
(1) The filing of the petition and the automatic stay;
(2) the date and time of the hearing on the eligibility of the petitioner for relief under §§ 113-113nn of this title pursuant to § 113e of this title;
(3) the date that objections, if any, to the petitioner’s eligibility must be filed;
(4) the schedule specified in subsection (a)(2) of § 113a of this title, or, if not available, the schedule specified in § 113(d)(1) of this title;
(5) the right of each affected creditor to advise the Court of its willingness to serve on the general committee to be appointed pursuant to subsection (a) of § 113q of this title, which advice shall be in the form of a notice filed with the Court prominently labeled as a “Notice of Willingness to Serve on General Committee,” and shall clearly provide a disclosure of their economic interests as set forth in clauses (1) and (2) of subsection (d) of § 113q of this title; and
(6) the threshold for the special trade debt.
(b) A petitioner also shall provide supplemental notice of the information required by subsection (a) of § 113b of this title by publication as specified in subsection (c)(2) of § 111o of this title, and by posting on the website for its case under §§ 113-113nn of this title.
History —June 28, 2014, No. 71, § 303.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113d - Remedies for violating the automatic stay

Any entity found to violate § 113c of this title shall be liable to the petitioner, and any other entity protected by the automatic stay, for compensatory damages, including any costs and expenses and attorneys’ fees incurred by the petitioner in defending against action taken in violation of that section, and for punitive damages for intentional and knowing violations. Further, upon determining there has been a violation of the stay imposed by § 113c of this title, the Court may order additional appropriate remedies, including that the acts comprising such violation be declared void or annulled.
History —June 28, 2014, No. 71, § 305.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113e - Eligibility hearing

(a) No later than thirty (30) days after the petition is filed, the Court shall hold a hearing, on notice in accordance with § 113kk of this title, to determine whether the petitioner is eligible for relief under §§ 113-113nn of this title.
(b) No later than forty-five (45) days after the petition is filed, the Court shall enter an order determining that the petitioner is or is not eligible for relief under §§ 113-113nn of this title upon a finding that the petitioner satisfies, or does not satisfy, as the case may be, the eligibility requirements in subsection (b) of § 111l of this title.
History —June 28, 2014, No. 71, § 306.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113g - Distribution of proceeds of transfer of substantially all assets

(a) In the event of a transfer of all or substantially all of the petitioner’s assets pursuant to § 113f of this title, after the closing of the transfer, the petitioner, with the approval of GDB (or GDB, at the Governor’s request, on behalf of the petitioner), shall file a statement of allocation setting forth how the proceeds of transfer shall be allocated among each affected creditor or classes of affected creditors, and each affected creditor shall be entitled to object to the allocation by filing an objection no later than thirty (30) days after the statement of allocation is filed. When the transfer proceeds include forms of consideration other than cash and cash equivalents, the statement of allocation shall provide which forms of consideration shall be distributed to which classes of claims, or whether the non-cash forms of consideration shall first be sold for cash and then distributed.
(b) The Court shall hold a hearing to determine each objection. When all objections are resolved, the petitioner shall file an amended statement of allocation of the proceeds of transfer consistent with the Court’s rulings on the objections. Affected creditors shall have fourteen (14) days to file objections to the petitioner’s amended statement of allocation; Provided, however, That such objections, if any, will be limited only to arguments that the amended statement of allocation does not accurately reflect the Court determination-after which the Court shall hold a hearing to resolve the objections and shall issue a final statement of allocation binding on the petitioner and all creditors. If there is no objection timely filed to the petitioner’s amended statement of allocation, the Court shall order that the net proceeds of transfer shall be allocated in accordance with the petitioner’s amended statement of allocation without further notice or hearing.
(c) If substantially all of the petitioner’s assets are transferred pursuant to § 113f of this title, a plan distributing the value of the assets not subject to such transfer shall not be required, but may be filed at the discretion of the petitioner, or by GDB on its behalf. If no such plan is filed, the final statement of allocation shall allocate the value of the assets that have not been transferred by means of such forms of consideration as are feasible and practicable under the circumstances.
History —June 28, 2014, No. 71, § 308.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113h - Protection for good faith acquirer

The reversal or modification on appeal of a transfer order shall not affect the validity of the transfer under such authorization to an entity that acquired such property in good faith, whether or not such entity knew of the pendency of the appeal, unless such authorization and such transfer were stayed pending appeal.
History —June 28, 2014, No. 71, § 309.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113i - Petitioner exclusivity

A petitioner may file a proposed plan (and any amendment) or proposed transfer of all or substantially all the petitioner’s assets if first approved by GDB, or GDB may file a proposed plan (and any amendment) or proposed transfer of all or substantially all the petitioner’s assets on behalf of the petitioner with approval of the Governor. No other entity may file a proposed plan or file a proposed transfer of any of the petitioner’s assets.
History —June 28, 2014, No. 71, § 310.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113j - Plan disclosure

The Court shall not confirm any plan unless the creditors’ committee(s) and all affected creditors receive at least forty-five (45) days before the hearing on confirmation of the plan, a written disclosure statement, approved by the Court, containing:
(a) The material facts demonstrating the petitioner’s reasons for contending the plan fairly uses the value of the petitioner’s assets or operating revenues to maximize repayment of claims consistent with the performance of public functions or otherwise fostering a growing economy that will generate increasing revenues and enable greater claim repayment. Confidential or proprietary information may be redacted from any disclosure made;
(b) the treatment of each class of the petitioner’s affected creditors under the plan and any material financial information reasonably necessary for such creditors to understand their future recoveries, if any, under the plan; and
(c) other information, if any, necessary to provide adequate information of a kind, and in sufficient detail, as far as reasonably practicable in light of the nature and history of the petitioner and the condition of the petitioner’s books and records, that would enable a hypothetical creditor in the relevant class to make an informed judgment about the plan, but adequate information need not include such information about any other possible or proposed plan.
History —June 28, 2014, No. 71, § 311.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113k - Affected debt entitled to vote

Subject to the petitioner’s right to deem a class to reject a plan, a class of claims of the petitioner is affected for purposes of voting under a plan unless, with respect to each claim of such class, the plan-
(a) Leaves unaffected the legal, equitable, and contractual rights to which such claim entitles the holder of such claim;
(b) pays such claim in full in cash; or
(c) notwithstanding any contractual provision or applicable law that entitles the holder of such claim to demand or receive accelerated payment of such claim after the occurrence of a default:
(1) Cures any such default that occurred before or after the filing of a petition under §§ 113-113nn of this title, other than a default of a kind that is not required to be cured or is unenforceable under this chapter or a default creating no money damages;
(2) reinstates the maturity of such claim as such maturity existed before such default;
(3) compensates the holder of such claim for any damages incurred as a result of any reasonable reliance by such holder on such contractual provision or such applicable law;
(4) if such claim arises from any failure to perform a nonmonetary obligation, compensates the holder of such claim for any actual pecuniary loss incurred by such holder as a result of such failure; and
(5) does not otherwise affect the legal, equitable, or contractual rights to which such claim entitles the holder of such claim.
History —June 28, 2014, No. 71, § 312.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113l - Plan amendments

The petitioner or GDB may amend the plan at any time before confirmation, but may not amend the plan so that the plan as amended fails to meet the requirements of §§ 113-113nn of this title. After the petitioner files an amendment, the plan as amended becomes the plan. Material modifications adverse to affected creditors shall require resolicitation and approval pursuant to subsection (e) of § 113n of this title prior to the confirmation hearing.
History —June 28, 2014, No. 71, § 313.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113m - Confirmation hearing

(a) After notice specified in § 113kk of this title, the Court shall hold a hearing on confirmation of the plan.
(b) Any creditors’ committee may object to the treatment of its constituency’s claims under the plan and any affected creditor may object to the treatment of its claims under the plan and each may be heard in opposition of or in support of the plan, by filing an objection or a pleading supporting the plan, in writing, no later than fourteen (14) days prior to commencement of the hearing on the plan.
History —June 28, 2014, No. 71, § 314.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113o - Compliance with final statement of allocation and confirmation order

Notwithstanding any otherwise applicable law, the petitioner and any entity organized or to be organized for the purpose of carrying out a final statement of allocation issued pursuant to § 113g of this title or a plan shall carry out the final statement of allocation or the plan and shall comply with all orders of the Court.
History —June 28, 2014, No. 71, § 316.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113p - Power of the Court

The Court, on its own motion or on the request of a party in interest:
(a) Shall hold such status conferences as are necessary to further the expeditious and economical resolution of the case;
(b) unless inconsistent with another provision of §§ 113-113nn of this title, may issue an order, notwithstanding the rules of civil procedure, prescribing such limitations and conditions as the Court deems appropriate to ensure that the case is handled expeditiously and economically, including an order that:
(1) Sets the date by which the petitioner shall file a disclosure statement and plan or a proposed transfer of all or substantially all the petitioner’s property; or
(2) sets deadlines for pleadings, responses, replies, and other matters;
(3) may issue an order fixing the timing, scope, and format of any notice required under this chapter.
History —June 28, 2014, No. 71, § 317.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113r - Powers and duties of Appointed Committees

(a) At a scheduled meeting of a creditors’ committee, at which a majority of the members of such creditors’ committee is present in person or by phone, the creditors’ committee may select and authorize the employment of up to two (2) law firms, one of which must be resident in the Commonwealth, and one financial advisor, to perform services for such creditors’ committee to be paid as administrative expenses in accordance with section § 113ff of this title; Provided, however, [That] upon seven (7) days’ notice to the petitioner and subject to the petitioner’s right to object, the general committee may retain one or more additional professionals, including law firms, when and if reasonably necessary to represent different constituencies of the general committee in respect of material issues. If the petitioner objects to the general committee’s proposed retention of any additional professional, the petitioner shall not be obligated to compensate such professional unless the Court rules its retention should be permitted.
(b) A creditors’ committee may only:
(1) Appear and be heard on any issue:
(A) Relating to the eligibility hearing pursuant to § 113e of this title;
(B) relating to adequate protection;
(C) involving new borrowing by the petitioner;
(D) concerning a transfer pursuant to § 113f of this title or the allocation of proceeds of transfer pursuant to § 113g of this title; and
(E) in connection with the plan, but solely as to matters regarding how the plan affects the creditors’ committee’s constituents;
(2) conduct a reasonable investigation into the petitioner’s legal and financial ability to increase distributions under the plan for the creditors’ committee’s constituents; and
(3) negotiate with the petitioner over the treatment of its constituents in the plan.
(c) A creditors’ committee appointed pursuant to § 113r of this title or its authorized agent shall receive copies of notices concerning motions and actions taken by the petitioner (and any objections thereto) pursuant to §§ 113f and 113g of this title, and §§ 113i-113o of this title.
(d) A creditors’ committee may request discovery in accordance with the Puerto Rico Rules of Civil Procedure, but only with respect to the matters enumerated in paragraphs (A)-(E) of subsection (b)(1) of this section.
(e) Subject to redaction of confidential or proprietary information, affected creditors who are not committee members may obtain the same discovery produced to the creditors’ committee and may obtain other discovery only, in each case, upon order of the Court for good cause shown.
(f) The committee shall not be a juridical entity capable of suing and being sued.
History —June 28, 2014, No. 71, § 319.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113s - Limitations on committees

(a) A creditors’ committee appointed under §§ 113-113nn of this title shall not have standing to commence an action either directly on its own behalf or derivatively on behalf of the petitioner or on behalf of the petitioner’s creditors, and may not be heard on any matter except as expressly provided in this chapter.
(b) Each creditors’ committee may make recommendations to its constituents with respect to the plan but cannot bind its constituencies or any member thereof to accept, reject, support, or object to any plan, and may not consent to a plan on behalf of any creditor.
(c) No member of a creditors’ committee appointed pursuant to § 113q of this title shall trade in claims against or securities issued by any Commonwealth entity, unless the member:
(1) Has established and enforces sufficient compliance procedures to prevent such member’s representative on the creditors’ committee from sharing information obtained as the member’s representative with any entity within or retained by the member in connection with the trading of claims against or securities issued by any Commonwealth entity;
(2) filed with the Court a notice of its intention to trade, which notice sets forth the details of the member’s compliance procedures referenced in subsection (c)(1) of this section;
(3) obtained approval of its compliance procedures from the petitioner, which approval, in the petitioner’s discretion, may be based on the recommendation of an entity knowledgeable in the securities industry and retained by or for the petitioner; and
(4) does not share information obtained from its service on the creditors’ committee with any entity within or retained by the member in connection with the trading of claims against or securities issued by any Commonwealth entity.
History —June 28, 2014, No. 71, § 320.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113t - Disbanding committees

All creditors’ committees automatically shall be disbanded on the earlier of the date the Court issues the final statement of allocation pursuant to § 113g of this title or confirms a plan for the petitioner, unless the final statement of allocation or plan provides otherwise or the Court orders otherwise. The petitioner may disband any additional committee appointed pursuant to subsection (c) of § 113q of this title by seven (7) days’ written notice to such additional committee and the Court.
History —June 28, 2014, No. 71, § 321.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113u - Obtaining credit

(a) A petitioner may obtain unsecured credit and incur unsecured debt allowable under §§ 113-113nn of this title as an administrative expense.
(b) If the petitioner is unable to obtain unsecured credit allowable as an administrative expense, the Court, after notice and a hearing, may authorize the obtaining of credit or the incurring of debt:
(1) With priority over any or all administrative expenses of the kind specified in § 113ff of this title;
(2) secured by a lien on property of the petitioner that is not otherwise subject to a lien;
(3) secured by a junior lien on property of the petitioner that is subject to a lien; or
(4) any combination of the preceding clauses (1), (2), and (3), in addition to allowance as an administrative expense.
(c) The Court, after notice and a hearing, may authorize the obtaining of credit or the incurring of debt secured by a senior or equal lien on the petitioner’s property that is subject to a lien only if:
(1) The petitioner is unable to obtain such credit otherwise; and
(2) either:
(A) The proceeds are needed to perform public functions and satisfy the requirements of § 111aa of this title; or
(B) there is adequate protection of the interest of the holder of the lien on the property of the petitioner on which such senior or equal lien is proposed to be granted.
(d) In any hearing pursuant to this section, the petitioner has the burden of proof.
(e) The reversal or modification on appeal of an authorization pursuant to this section to obtain credit or incur debt, or of a grant pursuant to this section of a priority or a lien, shall not affect the validity of any debt so incurred, or any priority or lien so granted, to an entity that extended such credit in good faith, whether or not such entity knew of the pendency of the appeal, unless such authorization and the incurring of such debt, or the granting of such priority or lien, was stayed pending appeal.
History —June 28, 2014, No. 71, § 322.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113v - Use or lease of property not subject to court approval

Unless the Court orders otherwise, without notice or a hearing, the petitioner may, in its sole discretion:
(a) Pay on a current basis:
(1) Its expenses accruing postpetition (exclusive of amounts related to prepetition indebtedness except as set forth in subsection (a)(2) of this section) and the costs and expenses incurred in connection with the case (including the reasonable fees and expenses of the professionals retained by or for the petitioner or GDB and any creditors’ committee(s) formed under §§ 113-113nn of this title, subject to §§ 113q, 113r and 113ff of this title); and
(2) its prepetition debt not scheduled to be affected under the plan or that is necessary to pay to safeguard the petitioner’s ability to perform its public functions;
(b) enter into transactions, including the lease of property, and use its property in its operations, including the use of revenues; and
(c) use cash and other resources as necessary to perform public functions, subject to subsection (a) of § 113w of this title.
History —June 28, 2014, No. 71, § 323.
2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 1 - Governmental Finances (§§ 1 — 155) › Chapter 8 - Puerto Rico Public Corporation Debt Enforcement and Recovery Act (§§ 111 — 113nn) › Subchapter III - Debt Enforcement (§§ 113 — 113nn) › § 113w - Adequate protection for use of property subject to lien or pledge

(a) To continue performing its public functions and to obtain confirmation of a plan or approval of a statement of allocation, the petitioner may use property, including cash collateral, subject to a lien, pledge, or other interest of or for the benefit of an entity, provided that the entity shall be entitled to a hearing, upon notice, to consider a request for adequate protection of its lien, pledge, or other interest as promptly as the Court’s calendar permits, at which hearing the Court may condition the use of the collateral on such terms, if any, as it determines necessary to adequately protect such interest.
(b) Notwithstanding anything to the contrary in this chapter, if revenues of a petitioner are subject to a pledge under which current expenses or operating expenses may be paid prior to the payment of principal, interest or other amounts owed to a creditor, the petitioner shall not be required to provide adequate protection to such creditor pursuant to this section, to the extent that sufficient revenues are unavailable for payment of such principal, interest or other amounts after full payment of such current expenses or operating expenses.
(c) If the entity holding a lien, pledge, or interest in the collateral consents to its use, then the entity shall be deemed adequately protected on the terms, if any, in the consent and no further adequate protection shall be required.
History —June 28, 2014, No. 71, § 324.