The Commonwealth of Puerto Rico and other related entities have filed petitions for relief under title III of the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”). Title III refers to the section of PROMESA that covers court-supervised restructurings of United States territories and their covered instrumentalities. A territory that files for protection under title III is allowed to continue to operate and provide services uninterrupted “in the ordinary course.” Prior to the commencement of the title III cases (described below), the Commonwealth and its instrumentalities incurred over $74 billion in bond debt and there are existing pension obligations of over $48 billion at this time. There is also more information available regarding title III in the Committee FAQs.
May 3, 2017. The Financial Oversight and Management Board for Puerto Rico (“Oversight Board”) commenced a title III case for the Commonwealth of Puerto Rico.
May 5, 2017. The Oversight Board commenced a title III case for Puerto Rico Sales Tax Financing Corporation (“COFINA”)
May 21, 2017. The Oversight Board commenced a title III case for the Puerto Rico Highways and Transportation Authority (“HTA”).
May 21, 2017. The Oversight Board commenced a title III case for the Employees Retirement System (“ERS”).
June 15, 2017. The official committee of unsecured creditors’ (the “Creditors’ Committee” or “Committee”) was appointed on June 15, 2017 by the Office of the United States Trustee for the District of Puerto Rico (the “U.S. Trustee”).
June 23, 2017. An order was entered by Judge Laura Taylor Swain appointing a five person mediation team, whose purpose per the order is to facilitate confidential settlement negotiations of any and all issues and proceedings in the title III cases and proceedings.
June 26-27, 2017. The Creditors’ Committee selected Paul Hastings LLP as its legal counsel and Zolfo Cooper LLC as its financial advisor. Subsequently, the Committee selected Casillas, Santiago & Torres LLC as its local counsel.
July 2, 2017. The Oversight Board commenced a title III case for the Puerto Rico Electric Power Authority (“PREPA”).
August 9, 2017. The Court approved a stipulation and agreed order approving procedures to resolve the Commonwealth-COFINA Dispute. The order appoints the Creditors’ Committee to serve as the Commonwealth representative to litigate and/or settle the issue of whether the sales and use taxes purportedly pledged by COFINA to secure debt are property of the Commonwealth or COFINA under applicable law (the “Stipulation”).
August 25, 2017. The U.S. Trustee appoints the Creditors’ Committee as official committee of unsecured creditors in the cases of ERS, HTA, and PREPA, as well as the Commonwealth. Per the amended notice of appointment filed by the U.S. Trustee, the Creditors’ Committee will not serve as official committee of unsecured creditors in the COFINA case. The Creditors’ Committee acts as a fiduciary for all general unsecured creditors of the Debtors and its duty is to maximize recoveries for the benefits of all such creditors.
September 27, 2019. The Oversight Board commenced a title III case for the Puerto Rico Public Buildings Authority (“PBA”).
Timeline
May 3, 2017
Commencement of Title III case for the Commonwealth
May 5, 2017
Commencement of Title III case for COFINA
May 21, 2017
Commencement of Title III case for HTA
Commencement of Title III case for ERS
July 2, 2017
Commencement of Title III case for PREPA
July 21, 2017
Committee files a motion for Rule 2004 discovery regarding causes of Puerto Rico financial crisis
September 8, 2017
Commencement of Commonwealth-COFINA Dispute litigation
November, 2017
Committee begins discovery with respect to Whitefish
February 15, 2018
Entry of Bar Date Order
April, 2018
Committee holds creditor information sessions regarding filing of proofs of claim
May 25, 2018
Court extends bar date, at request of committee, to June 29, 2018
June 6, 2018
Agreement in principle with respect to Commonwealth-COFINA Dispute
June 29, 2018
Claims Bar Date
August 1, 2018
Court grants Committee’s motion for greater disclosure from bondholder groups
August 10, 2018
Commencement of Title VI case for GDB
August 20, 2018
Publication of Kobre & Kim Final Report
August - September, 2018
Committee files series of pleadings objecting to GDB restructuring
October 4, 2018
Stipulation signed resolving committee’s objections to GDB restructuring
November 7, 2018
Court approves GDB Title VI restructuring
December 14, 2018
Court grants committee’s motion for Rule 2004 discovery regarding prepetition transactions
December 21, 2018
Committee and Oversight Board file adversary proceeding challenging PBA structure
January 14, 2019
Committee and Oversight Board object to over $6 billion in 2012-2014 GO bond claims
February 4, 2019
Confirmation of COFINA Plan of Adjustment
March 12, 2019
Committee objects to over $3 billion in ERS bond claims
May 2019
Adversary proceedings filed on behalf of Commonwealth, ERS, and HTA
May 21, 2019
Committee objects to over $1 billion of 2011 GO bond claims
July 18, 2019
Committee objects to over $1.75 billion of 2011 and 2012 of PBA bond claims
September 27, 2019
Oversight Board files proposed Commonwealth Plan of Adjustment and commences Title III case for PBA