Puerto Rico, still recovering from Hurricane Maria, is at least $73 billion in debt. Hurricane Maria created even more potential debt and has made it difficult to continue with certain cases. The islands will most likely need tens of billions of additional dollars to help recover from the damage. The territory is currently restructuring a part of its debt through the Title 3 process, which is the equivalent of filing bankruptcy. This is a fairly rare occurrence. Since 2010, only nine local governments have filed for bankruptcy. Judge Laura Swain, the judge who is overseeing the islands’ bankruptcy case,...Read More
Author: Aubree Hopkins
Federal judge Laura Taylor Swain rejected a request to install a former military officer to oversee Puerto Rico’s electric utility, the Puerto Rico Electric Power Authority. The motion was filed on October 16, 2017, by the federally appointed Financial Oversight and Management Board for Puerto Rico. The Oversight Board was established under PROMESA to help Puerto Rico recover from over $120 billion in debt and pension liabilities. The board had hoped to install retired US Air Force Colonel Noel Zamot as PREPA’s chief transformation officer. Colonel Zamot’s name was put forward as an emergency manager after PREPA was denounced...Read More
Ever since Hurricane Maria, the judicial system in Puerto Rico has been otherwise occupied, no longer focusing on a large number of cases that deal with PROMESA and the issues that have arisen from that. On October 25, 2017, the judge who currently presides over the majority of cases that deal with bankruptcy and similar issues approved the commonwealth’s stipulations for using FEMA relief funds to help Puerto Rico rebuild after Hurricane Maria. The money is to be used solely for cleanup efforts. This helps clear the path to rebuild by legally allowing them to accept federal dollars without...Read More
On December 1, 2016, Trigo-Gonzalez, et al v. Garcia-Padilla, et al, was filed in the First Circuit of the US Court of Appeals. This case, like the majority of cases covered by Pasquines, deals with the constitutionality of state statutes. The plaintiffs for the case are Carmen Feliciano Vargas, First Medical Health Plans of Puerto Rico, Inc. and Eduardo Artau Gomez. The movant appellant is the Financial Oversight and Management Board for Puerto Rico. The interested party for this case is the United States of America. The complaint was initially filed in the United States District Court for Puerto...Read More
On September 21, 2016, Altair Global Credit Opportunities Fund (A), LLC, et al, along with several others, filed a lawsuit in the United States District Court for Puerto Rico regarding the constitutionality of state statutes. The respondents include then governor Alejandro Garcia-Padilla, then Treasury secretary Juan Zaragoza-Gomez, Luis F. Cruz-Batista, and The Employees Retirement System of the Commonwealth of Puerto Rico. The movants of this lawsuit are: Altair Global Credit Opportunities Fund (A), LLC Claren Road Credit Master Fund, Ltd. Claren Road Credit Opportunities Master Fund, Ltd. Glendon Opportunities Fund, LP Nokota Capital Master Fund, L.P. Oaktree-Forrest Multi-Strategy, L.L....Read More
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