Court Opinion

ID: 9809071
Source: CourtListenerOpinion
Date Created: 2023-08-31 21:00:22.968831+00
Date Added: 2024-06-11T12:24:42.403358
License: Public Domain

United States Court of Appeals
                     For the First Circuit

No. 22-1092

 IN RE: THE FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO
RICO, AS REPRESENTATIVE FOR THE COMMONWEALTH OF PUERTO RICO; THE
  FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO RICO, AS
     REPRESENTATIVE FOR THE PUERTO RICO SALES TAX FINANCING
     CORPORATION, a/k/a Cofina; THE FINANCIAL OVERSIGHT AND
  MANAGEMENT BOARD FOR PUERTO RICO, AS REPRESENTATIVE FOR THE
      EMPLOYEES RETIREMENT SYSTEM OF THE GOVERNMENT OF THE
    COMMONWEALTH OF PUERTO RICO; THE FINANCIAL OVERSIGHT AND
  MANAGEMENT BOARD FOR PUERTO RICO, AS REPRESENTATIVE FOR THE
PUERTO RICO HIGHWAYS AND TRANSPORTATION AUTHORITY; THE FINANCIAL
       OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO RICO, AS
       REPRESENTATIVE FOR THE PUERTO RICO ELECTRIC POWER
AUTHORITY (PREPA); THE FINANCIAL OVERSIGHT AND MANAGEMENT BOARD
  FOR PUERTO RICO, AS REPRESENTATIVE OF THE PUERTO RICO PUBLIC
                      BUILDINGS AUTHORITY,

                            Debtors,

THE FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO RICO, AS
    REPRESENTATIVE FOR THE COMMONWEALTH OF PUERTO RICO; THE
  FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO RICO, AS
 REPRESENTATIVE OF THE PUERTO RICO PUBLIC BUILDINGS AUTHORITY,

              Debtors, Appellees, Cross-Appellants,

THE FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO RICO, AS
   REPRESENTATIVE FOR THE EMPLOYEES RETIREMENT SYSTEM OF THE
         GOVERNMENT OF THE COMMONWEALTH OF PUERTO RICO,

                        Debtor, Appellee,

                               v.

  COOPERATIVA DE AHORRO Y CREDITO ABRAHAM ROSA; COOPERATIVA DE
 AHORRO Y CREDITO DE CIALES; COOPERATIVA DE AHORRO Y CREDITO DE
     JUANA DIAZ; COOPERATIVA DE AHORRO Y CREDITO DE RINCON;
  COOPERATIVA DE AHORRO Y CREDITO DE VEGA ALTA; COOPERATIVA DE
           AHORRO Y CREDITO DR. MANUEL ZENO GANDIA,

            Objectors, Appellants, Cross-Appellees,

                       SUIZA DAIRY CORP.,

        Objector, Claimant, Appellant, Cross-Appellee,

  LUIS F. PABON BOSQUES; RAUL MARTINEZ PEREZ; ELVIN A. ROSADO
    MORALES; CARLOS A. ROJAS ROSARIO; RAFAEL TORRES RAMOS,

            Creditors, Appellants, Cross-Appellees,

  DESARROLLADORA ORAMA, S.E.; C.O.D. TIRE DISTRIBUTORS IMPORTS
ASIA, INC.; CORREA TIRE DISTRIBUTOR INC.; WORLD WIDE TIRE, INC.;
SEQUERIA TRADING CORPORATION; SABATIER TIRE CENTER, INC.; VICTOR
   LOPEZ CORTES, INC.; MULTI GOMAS, INC.; JOSE COLLAZO PEREZ;
IVELISSE TAVARES MARRERO; MANUEL PEREZ ORTIZ; CORAL COVE, INC.;
     SUCESION ANGEL ALVAREZ PEREZ; ANTONIO COLON SANTIAGO;
 COOPERATIVA DE AHORRO Y CREDITO DE AGUADA; VILMA TERESA TORRES
  LOPEZ; VIVIANA ORTIZ MERCADO; ORLANDO TORRES BERRIOS; GERMAN
 TORRES BERRIOS; JUAN ALBERTO TORRES BERRIOS; VHERMANOS TORRES
   TORRES, INC.; CORPORACION PLAYA INDIA, S.E.; MARIANO RAMOS
GONZALEZ; RAMON MORAN LOUBRIEL; RAFAEL MORAN LOUBRIEL; ANA MORAN
 LOUBRIEL; SAN GERONIMO CARIBE PROJECT, INC.; CARIBBEAN AIRPORT
   FACILITIES INC.; ESTATE OF RAUL DE PEDRO & DIANA MARTINEZ;
    ALFONSO FERNANDEZ CRUZ; SUN AND SAND INVESTMENTS, CORP.;
FDR1500, CORP.; MARGARETA BLONDET; SUCESION COMPUESTO POR MARIA
   I. RUBERT BLONDET; SONIA RUBERT BLONDET; MARGARITA RUBERT
BLONDET; SONIA RUBERT, Administradora; MANUEL A. RIVERA-SANTOS;
JORGE RIVERA-SANTOS; CARLOS MANUEL RIVERA-SANTOS; PABLO MELENDEZ
   BRULLA; SUCESION AGUSTIN RODRIGUEZ COLON; GLORIA M. ESTEVA
MARQUES; SUCESION MANUEL MARTINEZ RODRIGUEZ; LUIS REYES FEIKERT;
 JORGE RAMON POZAS; MIRIAM SANCHEZ LEBRON; JUAN A. TAPIA ORTIZ;
                      ANTONIO PEREZ COLON;

                     Claimants, Appellees,

PFZ PROPERTIES, INC.; OSCAR ADOLFO MANDRY APARICIO; MARIA DEL
CARMEN AMALIA MANDRY LLOMBART; SELMA VERONICA MANDRY LLOMBART;
 MARIA DEL CARMEN LLOMBART BAS; OSCAR ADOLFO MANDRY BONILLA;
  GUSTAVO ALEJANDRO MANDRY BONILLA; YVELISE HELENA FINGERHUT
MANDRY; MARGARET ANN FINGERHUT MANDRY; VICTOR ROBERT FINGERHUT
  MANDRY; JUAN CARLOS ESTEVA FINGERHUT; PEDRO MIGUEL ESTEVA
  FINGERHUT; MARIANO JAVIER MCCONNIE FINGERHUT; JANICE MARIE
MCCONNIE FINGERHUT; VICTOR MICHAEL FINGERHUT COCHRAN; MICHELLE
ELAINE FINGERHUT COCHRAN; ROSA ESTELA MERCADO GUZMAN; EDUARDO
 JOSE MANDRY MERCADO; SALVADOR RAFAEL MANDRY MERCADO; MARGARITA
  ROSA MANDRY MERCADO; ADRIAN ROBERTO MANDRY MERCADO; VICENTE
PEREZ ACEVEDO; CORPORACION MARCARIBE INVESTMENT; DEMETRIO AMADOR
INC.; DEMETRIO AMADOR ROBERTS; MARUZ REAL ESTATE CORP.; LORTU-TA
     LTD., INC.; LA CUARTEROLA, INC.; JUAZA, INC.; CONJUGAL
PARTNERSHIP ZALDUONDO-MACHICOTE; FRANK E. TORRES RODRIGUEZ; EVA
  TORRES RODRIGUEZ; FINCA MATILDE, INC.; JORGE RAFAEL EDUARDO
                        COLLAZO QUINONES,

               Objectors, Claimants, Appellees,

   ANTONIO MARTIN CERVERA; MARIA TERESITA MARTIN; WANDA ORTIZ
 SANTIAGO; NANCY I. NEGRON-LOPEZ; GROUP WAGE CREDITORS; YASHEI
ROSARIO; ANA A. NUNEZ VELAZQUEZ; EDGARDO MARQUEZ LIZARDI; MARIA
   M. ORTIZ MORALES; ARTHUR SAMODOVITZ; MIGUEL LUNA DE JESUS;
ISMAEL L. PURCELL SOLER; ALYS COLLAZO BOUGEOIS; MILDRED BATISTA
     DE LEON; JAVIER ALEJANDRINO OSORIO; SERVICE EMPLOYEES
    INTERNATIONAL UNION (SEIU); INTERNATIONAL UNION, UNITED
  AUTOMOBILE, AEROSPACE AND AGRICULTURAL IMPLEMENT WORKERS OF
AMERICA; MAPFRE PRAICO INSURANCE COMPANY; CERTAIN CREDITORS WHO
   FILED ACTIONS IN THE UNITED STATES DISTRICT COURT FOR THE
  DISTRICT OF PUERTO RICO; MED CENTRO, INC., f/k/a Consejo de
Salud de la Comunidad de la Playa de Ponce, Inc.; ASOCIACION DE
 JUBILADOS DE LA JUDICATURA DE PUERTO RICO; HON. HECTOR URGELL
 CUEBAS; COOPERATIVA DE AHORRO Y CREDITO VEGABAJENA; UNIVERSITY
OF PUERTO RICO RETIREMENT SYSTEM TRUST; PETER C. HEIN; MIRIAM E.
   LIMA COLON; BETZAIDA FELICIANO CONCEPCION; ANGEL L. MENDEZ
  GONZALEZ; ASOCIACION DE MAESTROS PUERTO RICO; ASOCIACION DE
  MAESTROS DE PUERTO RICO-LOCAL SINDICAL; MORGAN STANLEY & CO.
   LLC; GOLDMAN SACHS & CO. LLC; J.P. MORGAN SECURITIES LLC;
SANTANDER SECURITIES LLC; SIDLEY AUSTIN LLP; BMO CAPITAL MARKETS
 GKST, INC.; CITIGROUP GLOBAL MARKETS INC.; SAMUEL A. RAMIREZ &
   CO., INC.; MESIROW FINANCIAL, INC.; MERRILL LYNCH, PIERCE,
   FENNER & SMITH INC.; MERRILL LYNCH CAPITAL SERVICES, INC.;
BARCLAYS CAPITAL INC.; RBC CAPITAL MARKETS, LLC; RAYMOND JAMES &
  ASSOCIATES, INC.; COMMUNITY HEALTH FOUNDATION OF P.R. INC.;
QUEST DIAGNOSTICS OF PUERTO RICO, INC.; U.S. BANK TRUST NATIONAL
  ASSOCIATION, as Trustee for the PRPFC Outstanding Bonds and
    PRIFA Bonds, and Fiscal Agent for PRPBA Bonds; U.S. BANK
NATIONAL ASSOCIATION, as Trustee for the PRPFC Outstanding Bonds
    and PRIFA Bonds, and Fiscal Agent for PRPBA Bonds; NILSA
CANDELARIO; EL OJO DE AGUA DEVELOPMENT, INC.; PEDRO JOSE NAZARIO
  SERRANO; JOEL RIVERA MORALES; MARIA DE LOURDES GOMEZ PEREZ;
   HECTOR CRUZ VILLANUEVA; LOURDES RODRIGUEZ; LUIS M. JORDAN
     RIVERA; TACONIC CAPITAL ADVISORS LP; AURELIUS CAPITAL
 MANAGEMENT, LP; CANYON CAPITAL ADVISORS LLC; FIRST BALLANTYNE
LLC; MOORE CAPITAL MANAGEMENT, LP; PUERTO RICO FISCAL AGENCY AND
FINANCIAL ADVISORY AUTHORITY; HON. PEDRO R. PIERLUISI URRUTIA;
   UNITED STATES, on behalf of the Internal Revenue Service;
ASOCIACION PUERTORRIQUENA DE LA JUDICATURA, INC.; FEDERACION DE
MAESTROS DE PUERTO RICO, INC.; GRUPO MAGISTERIAL EDUCADORES(AS)
 POR LA DEMOCRACIA, UNIDAD, CAMBIO, MILITANCIA Y ORGANIZACION
SINDICAL, INC.; UNION NACIONAL DE EDUCADORES Y TRABAJADORES DE
  LA EDUCACION, INC.; MARIA A. CLEMENTE ROSA; JOSE N. TIRADO
GARCIA, as President of the United Firefighters Union of Puerto
                             Rico,

                     Objectors, Appellees,

 VAQUERIA TRES MONJITAS, INC.; BLACKROCK FINANCIAL MANAGEMENT,
 INC.; EMSO ASSET MANAGEMENT LIMITED; MASON CAPITAL MANAGEMENT,
  LLC; SILVER POINT CAPITAL, L.P.; VR ADVISORY SERVICES, LTD;
   AURELIUS CAPITAL MANAGEMENT, LP, on behalf of its managed
  entities; GOLDENTREE ASSET MANAGEMENT LP, on behalf of funds
  under management; WHITEBOX ADVISORS LLC, on behalf of funds
 under management; MONARCH ALTERNATIVE CAPITAL LP, on behalf of
funds under management; TACONIC CAPITAL ADVISORS L.P., on behalf
 of funds under management; ARISTEIA CAPITAL, LLC, on behalf of
 funds under management; FARMSTEAD CAPITAL MANAGEMENT, LLC, on
 behalf of funds under management; FOUNDATION CREDIT, on behalf
 of funds under management; CANYON CAPITAL ADVISORS LLC, in its
  capacity as a member of the QTCB Noteholder Group; DAVIDSON
 KEMPNER CAPITAL MANAGEMENT LP, in its capacity as a member of
the QTCB Noteholder Group; SCULPTOR CAPITAL LP, in its capacity
 as a member of the QTCB Noteholder Group; SCULPTOR CAPITAL II
 LP, in its capacity as a member of the QTCB Noteholder Group;
   AMBAC ASSURANCE CORPORATION; ANDALUSIAN GLOBAL DESIGNATED
 ACTIVITY COMPANY; CROWN MANAGED ACCOUNTS, for and on behalf of
  Crown/PW SP; LMA SPC, for and on behalf of Map 98 Segregated
Portfolio; MASON CAPITAL MASTER FUND LP; OAKTREE-FORREST MULTI-
 STRATEGY, LLC (SERIES B); OAKTREE OPPORTUNITIES FUND IX, L.P.;
    OAKTREE OPPORTUNITIES FUND IX (PARALLEL), L.P.; OAKTREE
  OPPORTUNITIES FUND IX (PARALLEL 2), L.P.; OAKTREE HUNTINGTON
 INVESTMENT FUND II, L.P.; OAKTREE OPPORTUNITIES FUND X, L.P.;
     OAKTREE OPPORTUNITIES FUND X (PARALLEL), L.P.; OAKTREE
     OPPORTUNITIES FUND X (PARALLEL 2), L.P.; OAKTREE VALUE
  OPPORTUNITIES FUND HOLDINGS, L.P.; OCEANA MASTER FUND LTD.;
OCHER ROSE, L.L.C.; PENTWATER MERGER ARBITRAGE MASTER FUND LTD.;
 PWCM MASTER FUND LTD.; REDWOOD MASTER FUND, LTD.; BANK OF NEW
YORK MELLON; OFFICIAL COMMITTEE OF UNSECURED CREDITORS; ASSURED
   GUARANTY CORP.; ASSURED GUARANTY MUNICIPAL CORP.; OFFICIAL
    COMMITTEE OF RETIRED EMPLOYEES; NATIONAL PUBLIC FINANCE
     GUARANTEE CORP.; FINANCIAL GUARANTY INSURANCE COMPANY;
 AMERINATIONAL COMMUNITY SERVICES, LLC, as servicer for the GDB
Debt Recovery Authority; CANTOR-KATZ COLLATERAL MONITOR LLC, as
    Collateral Monitor for the GDB Debt Recovery Authority.;
  ATLANTIC MEDICAL CENTER, INC.; CAMUY HEALTH SERVICES, INC.;
CENTRO DE SALUD FAMILIAR DR. JULIO PALMIERI FERRI, INC.; CIALES
   PRIMARY HEALTH CARE SERVICES, INC.; CORP. DE SERV. MEDICOS
  PRIMARIOS Y PREVENCION DE HATILLO, INC.; COSTA SALUD, INC.;
CENTRO DE SALUD DE LARES, INC.; CENTRO DE SERVICIOS PRIMARIOS DE
SALUD DE PATILLAS, INC.; HOSPITAL GENERAL CASTANER, INC.; GNMA &
 US GOVERNMENT TARGET MATURITY FUND FOR PUERTO RICO RESIDENTS,
 INC., f/k/a Puerto Rico GNMA & U.S. Government Target Maturity
Fund, Inc.; MORTGAGE-BACKED & US GOVERNMENT SECURITIES FUND FOR
PUERTO RICO RESIDENTS, INC., f/k/a Puerto Rico Mortgage-Backed &
  U.S. Government Securities Fund, Inc.; PUERTO RICO RESIDENTS
  BOND FUND I, f/k/a Puerto Rico Investors Bond Fund I; PUERTO
RICO RESIDENTS TAX-FREE FUND, INC., f/k/a Puerto Rico Investors
  Tax-Free Fund, Inc.; PUERTO RICO RESIDENTS TAX-FREE FUND II,
INC., f/k/a Puerto Rico Investors Tax-Free Fund II, Inc.; PUERTO
   RICO RESIDENTS TAX-FREE FUND III, INC., f/k/a Puerto Rico
 Investors Tax-Free Fund III, Inc.; PUERTO RICO RESIDENTS TAX-
 FREE FUND IV, INC., f/k/a Puerto Rico Investors Tax-Free Fund
  IV, Inc.; PUERTO RICO RESIDENTS TAX-FREE FUND V, INC., f/k/a
    Puerto Rico Investors Tax-Free Fund V, Inc.; PUERTO RICO
 RESIDENTS TAX-FREE FUND VI, INC., f/k/a Puerto Rico Investors
 Tax-Free Fund VI, Inc.; TAX-FREE FIXED INCOME FUND FOR PUERTO
RICO RESIDENTS, INC., f/k/a Puerto Rico Fixed Income Fund, Inc.;
 TAX-FREE FIXED INCOME FUND II FOR PUERTO RICO RESIDENTS, INC.,
  f/k/a Puerto Rico Fixed Income Fund II, Inc.; TAX-FREE FIXED
 INCOME FUND III FOR PUERTO RICO RESIDENTS, INC., f/k/a Puerto
Rico Fixed Income Fund III, Inc.; TAX-FREE FIXED INCOME FUND IV
FOR PUERTO RICO RESIDENTS, INC., f/k/a Puerto Rico Fixed Income
  Fund IV, Inc.; TAX-FREE FIXED INCOME FUND V FOR PUERTO RICO
 RESIDENTS, INC., f/k/a Puerto Rico Fixed Income Fund V, Inc.;
 TAX-FREE FIXED INCOME FUND VI FOR PUERTO RICO RESIDENTS, INC.,
f/k/a Puerto Rico Fixed Income Fund VI, Inc.; TAX FREE FUND FOR
 PUERTO RICO RESIDENTS, INC., f/k/a Tax-Free Puerto Rico Fund,
 Inc.; TAX FREE FUND II FOR PUERTO RICO RESIDENTS, INC., f/k/a
     Tax-Free Puerto Rico Fund II, Inc.; TAX-FREE HIGH GRADE
   PORTFOLIO BOND FUND FOR PUERTO RICO RESIDENTS, INC., f/k/a
 Puerto Rico AAA Portfolio Bond Fund, Inc.; TAX-FREE HIGH GRADE
 PORTFOLIO BOND FUND II FOR PUERTO RICO RESIDENTS, INC., f/k/a
  Puerto Rico AAA Portfolio Bond Fund II, Inc.; TAX-FREE HIGH
GRADE PORTFOLIO TARGET MATURITY FUND FOR PUERTO RICO RESIDENTS,
  INC., f/k/a Puerto Rico AAA Portfolio Target Maturity Fund,
 Inc.; TAX FREE TARGET MATURITY FUND FOR PUERTO RICO RESIDENTS,
INC., f/k/a Tax-Free Puerto Rico Target Maturity Fund, Inc.; UBS
     IRA SELECT GROWTH & INCOME PUERTO RICO FUND; SERVICIOS
                INTEGRALES EN LA MONTANA (SIM),

                     Creditors, Appellees,

                        UNITED STATES,

                     Respondent, Appellee.

                         ERRATA SHEET

     The opinion of this Court, issued on August 22, 2023, is
amended as follows:

     On page 12, in the last line of n.2, replace "claim" with
"claims"

    On page 29, line 7, replace "modified" with "Modified"