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