The Committee has reached a settlement with the Oversight Board in connection with the proposed plan of adjustment of HTA that provides significant recoveries for holders of allowed HTA General Unsecured Claims in Class 16. As a result of the Committee’s settlement, the HTA plan of adjustment provides cash consideration to or for the benefit of Class 16 creditors consisting of $48 million of cash (representing an effective recovery rate of approximately 19%), in addition to the net recoveries from certain avoidance and recovery actions. Moreover, as part of the Committee’s efforts and the global settlement reached, the Committee was able to set the threshold for Convenience Class treatment (which provides such creditors with a 100% recovery on account of their allowed claims (without post-petition interest)) at $20,000 per claim.
For a more detailed discussion of the Committee’s settlement and the reasons the Committee agreed to reach this settlement, please see the Committee’s letter to general unsecured creditors, linked here, which will be sent to general unsecured creditors along with the ballots to be used for voting whether to accept or reject the plan. To read the disclosure statement click here, and to read the plan, click here.
Please also note certain of the key dates associated with the plan of adjustment process for the Commonwealth, ERS, and PBA.
- July 2022: Mailing of solicitation information and ballots to creditors.
- July 27, 2022 at 5:00 p.m. (Atlantic Standard Time): Voting deadline.
- July 27, 2022 at 5:00 p.m. (Atlantic Standard Time): Deadline to file objections to plan.
- August 17-18, 2022 at 9:30 a.m. (Atlantic Standard Time): Confirmation hearing.
THE SUMMARY OF THE TREATMENT OF GENERAL UNSECURED CREDITORS SET FORTH HEREIN IS QUALIFIED IN ITS ENTIRETY BY THE DISCLOSURE STATEMENT FOR THE THIRD AMENDED TITLE III PLAN OF ADJUSTMENT OF THE HIGHWAYS AND TRANSPORTATION AUTHORITY OF PUERTO RICO [DOCKET NO. 21269] APPROVED BY THE COURT’S ORDER DATED JUNE 22, 2022 [DOCKET NO 21293].
INFORMATION PROVIDED TO YOU ON THE COMMITTEE’S WEBSITE IS FOR GENERAL INFORMATIONAL PURPOSES ONLY AND NOT FOR THE PURPOSE OF PROVIDING LEGAL ADVICE OF ANY NATURE, INCLUDING AS TO THE AMOUNT, NATURE, OR SECURED OR PRIORITY STATUS OF ANY CLAIM. YOU SHOULD CONSULT YOUR ATTORNEY TO OBTAIN LEGAL ADVICE WITH RESPECT TO ANY PARTICULAR ISSUE. USE OF THE COMMITTEE’S WEBSITE DOES NOT CREATE AN ATTORNEY-CLIENT RELATIONSHIP WITH ANY ADVISOR TO THE CREDITORS’ COMMITTEE.