/raid1/www/Hosts/bankrupt/TCRLA_Public/210720.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Tuesday, July 20, 2021, Vol. 22, No. 138
Headlines
A N T I G U A A N D B A R B U D A
LIAT LTD: Employee Says No Hope of Severance From Antigua
B R A Z I L
BRAZIL: Braces for Big Drop in Coffee Production
GOL LINHAS: Plans to Increase Capacity by 80% in the 3rd Quarter
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Increased Public Debt the Most in LATAM in 2020
J A M A I C A
JAMAICA: Tourism Industry on the Way to Recovery, Says Holness
P U E R T O R I C O
PUERTO RICO: GCarlo, Morrison 11th Update on Debtholders
PUERTO RICO: Morgan, Correa 10th Update on QTCB Noteholder Group
- - - - -
=====================================
A N T I G U A A N D B A R B U D A
=====================================
LIAT LTD: Employee Says No Hope of Severance From Antigua
---------------------------------------------------------
Barbados Today reports that a Barbadian engineer still employed
with Antigua-based airline LIAT Ltd., formerly known as Leeward
Islands Air Transport or LIAT, has told his former co-workers not
to hold out any hope of the government in that twin-island nation
paying them severance.
Francis Ifill, one of 103 employees who remain on the payroll of
the company which is under court-sanctioned administration, said
there is no state fund from which the terminated workers can be
paid, according to Barbados Today.
"There is no such thing as a severance payments fund in Antigua.
LIAT (1974) Limited is responsible for your severance. There is no
government entity . . . no coverage like Barbados has to pay us.
So, we are basically at the mercy of the government of Antigua,"
Ifill told Barbados TODAY.
He was responding to suggestions by Prime Minister Mia Mottley and
Attorney General Dale Marshall earlier this year that the employees
who worked in Antigua and contributed to its social security scheme
are entitled to be paid severance by the government there, the
report discloses.
However, Ifill explained that Antigua's social security fund does
not cover severance, the report relays.
"We paid social security, we paid medical benefits . . . Social
security is for pensions, so that you receive a pension when you
reach the age of 60 -- well it has now moved to the age of 62 --
and an education levy which we could not benefit from because
obviously your children would have to be at school in Antigua. But
there is no such thing as a severance payment fund in Antigua," the
LIAT engineer reiterated, the report notes.
He also sought to set the record straight, in response to the
Attorney General who, during the Estimates debate in Parliament in
March, said Barbadian workers had opted to be employed in Antigua
rather than stay in Barbados, the report discloses.
"They opted for the benefit of being employed in Antigua, earning
hefty salaries in Antigua. They had all the benefits of living and
working there. . . . This caring government decided that we would
leave no one to the wolves, and as far back as July or August last
year, we gave every single one of those employees. . . . whether
they were paid here or paid in Antigua . . . we gave everyone a
payment, the report says.
"Put another way - they made up their beds in Antigua and therefore
their fortunes are left in the hands of the Antigua
administration," Marshall had said, adding that while the Barbados
Government was not legally obligated to pay severance, it would
assist the workers however it could, the report notes.
However, Ifill rejected any suggestion that those who went to
Antigua to work had a choice in the matter, the report discloses.
"It was not a choice. I am an engineer and I have been working for
the company for 39-plus years. Come December, if I am still there,
it will be 40 years. I started out as a mechanic here in Barbados
paying National Insurance and all such like. In 1989, I was
promoted to engineer and transferred automatically to the Antigua
payroll. There wasn't any choice in the matter; that is how it was
done," he told Barbados TODAY.
"All the pilots, engineers and flight attendants [can be
transferred] . . . That's the nature of our work and contract."
While he remains employed, unlike more than 100 other Barbadians
who were among the hundreds severed by the airline last year, Ifill
has had his salary slashed in half, the report relays.
Even so, he said, he has not been paid for the last three months.
"I have been forced to work for half pay since July last year. My
salary was cut in half. So I work for half pay and they pay me when
they feel like it," the engineer said, the report notes.
"There were 103 people who were never terminated or laid off and I
happened to be one of them. I am one of only two people in Barbados
who still basically is permanently employed with LIAT," he further
explained, the report relates.
A group of former workers, most of them Barbadians, has filed a
legal challenge in the High Court in Antigua and Barbuda, designed
to recoup the millions of dollars in severance and other
entitlements due to the workers who were based there, the report
discloses.
In March this year, Antigua and Barbuda Prime Minister Gaston
Bowne, who said that each shareholder government was obligated to
pay the severance of their nationals according to the level of its
shares, had chastised the group for what he said was their move to
thwart his administration's efforts at establishing a compassionate
payout arrangement for terminated staff, the report adds.
About LIAT
LIAT Ltd., formerly known as Leeward Islands Air Transport or LIAT,
is an airline headquartered on the grounds of V. C. Bird
International Airport in Antigua. It operates high-frequency
inter-island scheduled services serving 15 destinations in the
Caribbean. The airline's main base is VC Bird International
Airport, Antigua and Barbuda, with bases at Grantley Adams
International Airport, Barbados and Piarco International Airport,
Trinidad and Tobago.
The airline is owned by seven Caribbean governments, with three
being the major shareholders: Barbados, Antigua & Barbuda and St.
Vincent and the Grenadines along with Dominica(94.7 %); other
Caribbean governments, private shareholders and employees (5.3%).
In the last few years, LIAT has been challenged with financial
difficulties, often needing additional funding as the airline dealt
with the high cost of operations. In November 2016, the Barbados
government defended LIAT's operations, even as opposition
legislators called for a cessation of the business. In early 2015,
LIAT offered early retirement packages to employees in efforts to
downsize. In 2014, LIAT knew it had to deal with unprofitable
routes to make operations viable. In the third quarter of 2013,
the airline's top management was shaken, with news Chief Executive
Officer Captain Ian Brunton's sudden resignation.
LIAT's current chief executive officer is Julie Reifer-Jones,
chairman is Jean Holder, and chief financial officer is Rojer
Inglis.
Dr. Ralph Gonsalves, prime minister of St. Vincent & the
Grenadines, serves as chairman of LIAT shareholders.
===========
B R A Z I L
===========
BRAZIL: Braces for Big Drop in Coffee Production
------------------------------------------------
Coffee prices have soared in recent months due to poor harvests and
increased demand and threaten to impact consumers internationally,
reports Dominican Today.
According to the United States Department of Agriculture, the
increase in demand is related to the change in habits that occurred
during the pandemic in many Western countries, where the purchase
of coffee machines in homes increased due to the closure of coffee
shops, the report notes.
Meanwhile, The Wall Street Journal affirms that Brazil is preparing
for one of the most significant drops in production in two decades
due to the scarcity of rainfall, according to Dominican Today.
After a production record in the arabica variant in 2020, a drop
was expected this year, but not as steep as feared, the report
relays.
Prices of this Brazilian variety reached their highest value last
month since 2016, and on the New York futures market, the arabica
variety has risen 18% in the previous three months, to $1.51 a
pound (453 grams), the report notes. Today, coffee futures
contracts continued their climb in New York, with a rise of 1.5% in
the early stages of the day, to 1.54 dollars, the report
discloses.
The newspaper also notes that two other major producers, Colombia
and Vietnam, while expecting much better harvests than Brazil, face
additional problems, the report discloses.
In Colombia, anti-government protests have blocked roads and slowed
down the arrival of the grain to the ports for export, and in
Vietnam, where more than a third of the robusta coffee is produced,
they are suffering a shortage of containers to transport the
product by ship, the report relays.
In addition, a fourth factor - the interest aroused in raw
materials by investors - is also influencing the increase in the
price of this product, the report relays.
Last June, a study by the University of Arizona (USA) revealed that
the restrictions and confinements imposed during the pandemic could
have a negative impact on the fight against diseases such as the
coffee rust fungus and, consequently, on production, the report
notes.
"The spread of covid-19 and coffee rust reveal systemic weaknesses
and inequities in our social and economic systems," said one of the
report's drafters, Kevon Rhiney, a professor at Rutgers University,
the report discloses.
It is estimated that around 100 million people worldwide make their
living from this commodity, especially in low-income countries, the
report adds.
GOL LINHAS: Plans to Increase Capacity by 80% in the 3rd Quarter
----------------------------------------------------------------
Rio Times Online reports that Gol informed that its total liquidity
at the end of June was R$1.7 billion (US$320 million), composed of
R$1 billion in cash and R$700 million in receivables. The airline
released an update of its estimates for the result of the second
half of 2021, scheduled for release July 29, according to Rio Times
Online.
The financial leverage, measured by the ratio of net debt to EBITDA
(earnings before interest, taxes, depreciation, and amortization)
was approximately 11 times, the report notes. Gol says it
amortized about R$800 million in debt, the report adds.
The report further notes that the airline plans to increase
capacity by 80% in the third quarter.
As reported in the Troubled Company Reporter-Latin America on June
21, 2021, S&P Global Ratings revised the outlook on Brazilian
airline Gol Linhas Aereas Inteligentes S.A. (Gol) to stable from
developing and affirmed its global scale 'CCC+' and national scale
'brBB' issuer credit ratings on Gol. At the same time, S&P affirmed
its 'CCC+' issue-level rating on the senior unsecured notes but
revised the recovery rating to '4' from '3', indicating its
expectation of average (30%-50%; rounded estimate: 35%) recovery in
the event of a payment default.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Increased Public Debt the Most in LATAM in 2020
-------------------------------------------------------------------
Dominican Today reports that Dominican Republic was the Latin
American country that increased the public debt the most during
2020, accumulating more than 16 percentage points with respect to
the Gross Domestic Product (GDP), a figure that represents US$44.6
billion, according to the Economic Commission for Latin America and
the Caribbean (ECLAC).
With that figure, the country placed the level of debt above
economies such as Brazil, Argentina or Colombia, according to
Dominican Today.
The data is contained in the report "Fiscal Outlook of Latin
America and the Caribbean 2021: the challenges of fiscal policy in
the transformative recovery post-COVID-19," the report relays.
It states that the Dominican debt increased from 39.6% of GDP in
2019 , to 55.9% the following year, which is equivalent to an
increase of 16.3 percentage points, the report adds.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis Rodolfo
Abinader Corona is the current president of the nation.
The Troubled Company Reporter-Latin America reported in April 2019
that the Dominican Today related that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."
An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.
Fitch Ratings on Jan. 18, 2021, assigned a 'BB-' rating to
Dominican Republic's USD1.5 billion 5.3% notes due Jan. 21, 2041.
Concurrently, the Dominican Republic reopened its 2030 4.5% notes
for an additional USD1.0 billion, which Fitch rates 'BB-', raising
the total outstanding amount of the 2030 notes to USD2.0 billion.
Standard & Poor's, on December 4, 2020, affirmed its 'BB-'
long-term foreign and local currency sovereign credit ratings on
the Dominican Republic. The outlook remains negative. S&P also
affirmed its 'B' short-term sovereign credit ratings. The negative
outlook reflects S&P's view that it could lower the ratings on the
Dominican Republic over the next six to 18 months, given the
severe impact of the COVID-19 pandemic on the sovereign's already
vulnerable fiscal and external profiles, as well as the potential
for a weaker-than-expected economic recovery.
Moody's credit rating for Dominican Republic was last set at Ba3
with stable outlook (July 2017). Fitch's credit rating for
Dominican Republic was last reported at BB- with negative outlook
(May 8, 2020).
=============
J A M A I C A
=============
JAMAICA: Tourism Industry on the Way to Recovery, Says Holness
--------------------------------------------------------------
RJR News reports that Prime Minister Andrew Holness says the local
tourism sector is now exceeding performance targets.
Speaking at a ground breaking ceremony, Mr. Holness gave arrival
figures for June, according to RJR News.
"Since May 2021, there has been a remarkable increase in visitor
arrivals. We have had approximately 164,0000 stop over visitors in
June . . . this is roughly 69 percent of the pre-pandemic number in
June 2019," the report notes.
Holness said based on the sector's performance and the global
vaccination effort, the tourism ministry has revised its arrival
outlook for 2021, the report relays.
"Up from 1.15 million, we are now expecting 1.61 million visitors,
which is not bad - we were edging closer to 5-million, that is not
bad, but we are recovering and that will bring in much needed
foreign exchange into the economy," he added.
About Jamaica
Jamaica is an island country situated in the Caribbean Sea.
Jamaica is an upper-middle income country with an economy heavily
dependent on tourism. Other major sectors of the Jamaican economy
include agriculture, mining, manufacturing, petroleum refining,
financial and insurance services.
Fitch Ratings affirmed in March 2021 Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+', with a stable
outlook. Standard & Poor's credit rating for Jamaica stands at B+
with negative outlook (April 2020). Moody's credit rating for
Jamaica was last set at B2 with stable outlook (December 2019).
According to Fitch, Jamaica 'B+' rating is supported by World Bank
Governance Indicators that are substantially stronger than the 'B'
and 'BB' medians, a favorable business climate according to the
World Bank Doing Business Survey, moderate inflation and moderate
commodity dependence. These strengths are balanced by vulnerability
to external shocks, a high public debt level and a debt composition
that makes the sovereign vulnerable to exchange rate fluctuations.
The Stable Outlook is supported by Fitch's expectation that the
public debt level will return to a firm downward path
post-pandemic, which is underpinned by political consensus to
maintain a high primary surplus, the resilience of external
finances, and stronger economic policy institutions.
=====================
P U E R T O R I C O
=====================
PUERTO RICO: GCarlo, Morrison 11th Update on Debtholders
--------------------------------------------------------
In the Chapter 11 cases of The Commonwealth Of Puerto Rico, et al.,
the law firms of Morrison & Foerster LLP and G. Carlo-Altieri Law
Offices, LLC submitted an eleventh supplemental verified statement
under Rule 2019 of the Federal Rules of Bankruptcy Procedure, to
disclose an updated list of the Ad Hoc Group of Constitutional
Debtholders that they are representing.
In August 2018, the Ad Hoc Group of Constitutional Debtholders
formed and, contemporaneously therewith, retained Morrison &
Foerster LLP and G. Carlo-Altieri Law Offices, LLC.
On August 27, 2018, Counsel submitted the Verified Statement of the
Ad Hoc Group of Constitutional Debtholders Pursuant to Federal Rule
of Bankruptcy Procedure 2019 [ECF No. 3808]. From time to time
Counsel has submitted supplemental verified statements, most
recently on April 15, 2021. [ECF Nos. 4178, 4983, 6067, 7952,
10742, 12276, 13552, 14520, 15993, 16444]. Counsel submits this
Supplemental Statement to update the membership in the Ad Hoc Group
of Constitutional Debtholders and information regarding the
disclosable economic interests currently held by members of the Ad
Hoc Group of Constitutional Debtholders.
As of July 12, 2021, members of the Ad Hoc Group of Constitutional
Debtholders and their disclosable economic interests are:
BlackRock Financial Management, Inc.
40 East 52nd Street
New York, NY 10022
* GO Series A 2002: $17,913,000
* GO Series A 2004: $4,700,000
* GO Series A 2005: $15,341,000
* GO Series A 2006: $12,205,000
* GO Series A 2007: $13,965,000
* GO Series A 2008: $24,930,000
* GO Series A 2011: $11,545,000
* GO Series A 2012: $94,111,243
* GO Series A 2014: $163,224,000
* GO Series B 2006: $5,765,000
* GO Series B 2009: $7,520,000
* GO Series C 2009: $2,368,000
* GO Series C 2011: $400,000
* PBA Series F 2002: $8,805,000
* PBA Series G 2002: $1,230,000
* PBA Series M 2007: $4,000,000
* PBA Series N 2007: $1,335,000
* PBA Series R 2011: $3,500,000
* PBA Series U 2012: $6,445,000
* PRASA 2012 Series A: $9,823,000
* PRASA 2021 Series A: $90,815,000
* PREPA 2004 Series NN: $2,100,000
* PREPA 2007 Series TT: $395,000
* PREPA 2007 Series TT RSA-1: $10,470,000
* PREPA 2007 Series UU: $2,520,000
* PREPA 2007 Series UU RSA-1: $40,960,000
* PREPA 2007 Series VV RSA-1: $6,440,000
* PREPA 2007 Series WW: $4,880,000
* PREPA 2007 Series WW RSA-1: $55,775,000
* PREPA 2010: $1,085,000
* PREPA 2010 Series AAA: $5,615,000
* PREPA 2010 Series AAA RSA-1: $57,885,000
* PREPA 2010 Series BBB RSA-1: $13,550,000
* PREPA 2010 Series CCC: $3,815,000
* PREPA 2010 Series CCC RSA-1: $18,325,000
* PREPA 2010 Series XX: $585,000
* PREPA 2010 Series XX RSA-1: $95,605,000
* PREPA 2010 Series YY RSA-1: $19,360,000
* PREPA 2010 Series ZZ: $6,155,000
* PREPA 2010 Series ZZ RSA-1: $47,650,000
* PREPA 2011 Series DDD RSA-1: $4,705,000
* PREPA 2012 Series A: $1,000,000
* PREPA 2012 Series A RSA-1: $60,695,000
* PREPA 2014 Series 2013A RSA-1: $87,870,000
* PREPA 2016 Series A-3: $17,060,455
* PREPA 2016 Series B-3: $17,060,454
* PREPA 2016 Series C-1: $46,880,000
* PREPA 2016 Series C-2: $46,880,000
* PREPA 2016 Series C-3: $4,675,000
* PREPA 2016 Series C-4: $4,800,000
* PREPA 2016 Series D-2 RSA-1: $5,270,280
* PREPA 2016 Series D-4 RSA-1: $7,500,000
Brigade Capital Management, LP
399 Park Avenue 16th Floor
New York, NY 10022
* GO Series A 2002: $1,375,000
* GO Series A 2008: $1,400,000
* GO Series A 2011: $2,385,000
* GO Series A 2012: $4,390,000
* GO Series B 2012: $3,395,000
* GO Series C 2011: $6,880,000
* GO Series D 2011: $75,000
* GO Series E 2011: $2,995,000
* PREPA 2004 Series NN: $835,000
* PREPA 2008 Series WW: $3,630,000
* PREPA 2010 Series AAA: $930,000
* PREPA 2010 Series CCC: $840,000
* PREPA 2010 Series XX: $355,000
* PREPA 2012 Series A: $335,000
Emso Asset Management Limited
21 Grosvenor Place
London SW1X 7HN
* GO Series A 2011: $30,670,000
* GO Series A 2012: $64,440,000
* GO Series A 2014: $855,544,000
Mason Capital Management, LLC
110 East 59th Street
New York, NY 10022
* ERS 2008 Series A: $262,248,000
* ERS 2008 Series B: $200,401,000
* ERS 2008 Series C: $58,695,000
* GO Series A 2011: $10,531,000
* GO Series A 2012: $53,328,000
* GO Series C 2011: $10,569,000
* GO Series E 2011: $5,485,000
* PBA Series C 2002: $3,505,000
* PBA Series D 2002: $7,833,000
* PBA Series I 2004: $5,000,000
* PBA Series M 2007: $6,770,000
* PBA Series N 2007: $24,765,000
* PBA Series U 2012: $41,820,000
Silver Point Capital, L.P.
Two Greenwich Plaza
Greenwich, CT 06830
* PRIFA BANs: $59,719,000
* PREPA 2010 Series XX: $400
* PREPA Series A RSA-1: $1,000,000
* PREPA Series A: $1,000
* PREPA Fuel Line: $95,000,000
* GO Series A 2012: $44,977,757
* GO Series A 2007: $14,175,000
* GO Series B 2006: $7,715,000
* GO Series A 2005: $16,000,000
* GO Series A 2008: $31,790,000
* GO Series A 2002: $8,925,000
* GO Series A 2006: $7,510,000
* GO Series E 2011: $13,285,000
* GO Series A 2011: $24,086,500
* GO Series B 2009: $17,435,000
* GO Series C 2009: $11,615,000
* GO Series C 2011: $4,255,000
* GO Series A 2014: $9,000,000
* PBA Series M 2007: $17,895,000
* PBA Series U 2012: $67,897,000
* PBA Series G 2002: $1,555,000
* PBA Series N 2007: $30,410,000
* PBA Series I 2004: $38,950,000
* PBA Series Q 2009: $11,807,000
* PBA Series D 2002: $7,030,000
* PBA Series S 2011: $6,725,000
* PBA Series F 2002: $245,000
* PBA Series P 2009: $16,870,000
* PBA Series C 2002: $740,000
* PR GDB Hacienda: $63,135,000
* PR Hacienda 43A: $50,419,093
VR Advisory Services, Ltd
300 Park Avenue 16th Floor
New York, NY 10022
* GDB 2019: $2,897,772
* GO Series 1998: $9,423,000
* GO Series 1999: $6,860,000
* GO Series A 2002: $23,625,000
* GO Series A 2004: $675,000
* GO Series A 2005: $2,915,000
* GO Series A 2006: $7,190,000
* GO Series A 2007: $9,605,000
* GO Series A 2008: $16,915,000
* GO Series A 2009: $710,000
* GO Series A 2011: $19,180,000
* GO Series A 2012: $137,574,000
* GO Series A 2014: $24,600,000
* GO Series B 2006: $2,461,000
* GO Series B 2009: $17,120,000
* GO Series B 2012: $21,595,000
* GO Series C 2008: $1,865,000
* GO Series C 2009: $19,230,000
* GO Series C 2011: $13,740,000
* GO Series D 2011: $1,755,000
* GO Series E 2011: $13,760,000
* PRIFA 2012 Series B: $2,855,000
* PBA Series C 2002: $150,000
* PBA Series D 2002: $1,135,000
* PBA Series F 2002: $210,000
* PBA Series G 2002: $280,000
* PBA Series I 2004: $5,715,000
* PBA Series L 1993: $145,000
* PBA Series M 2007: $4,065,000
* PBA Series N 2007: $1,765,000
* PBA Series P 2009: $1,255,000
* PBA Series Q 2009: $1,965,000
* PBA Series R 2011: $8,004,000
* PBA Series S 2011: $12,690,000
* PBA Series U 2012: $16,665,000
In addition to the Ad Hoc Group of Constitutional Debtholders, as
of the date of this Supplemental Statement, Counsel previously
represented an ad hoc group of creditors known as the PBA Funds in
connection with the Title III Cases.
Nothing contained in this Supplemental Statement should be
construed as a limitation upon, or waiver of, any rights of any
member of the Ad Hoc Group of Constitutional Debtholders to
assert,
file, and/or amend any claim or proof of claim filed in accordance
with applicable law and any orders entered in these cases.
Counsel reserves the right to amend this Supplemental Statement as
necessary in accordance with the requirements set forth in
Bankruptcy Rule 2019.
Counsel for the Ad Hoc Group of Constitutional Debtholders can be
reached at:
G. CARLO-ALTIERI LAW OFFICES, LLC
Gerardo A. Carlo, Esq.
254 San Jose St., Third Floor
San Juan, Puerto Rico 00901
Telephone: (787) 247-6680
Facsimile: (787) 919-0527
- and -
MORRISON & FOERSTER LLP
Gary S. Lee, Esq.
James M. Peck, Esq.
Theresa A. Foudy, Esq.
Andrew Kissner, Esq.
250 West 55th Street
New York, NY 10019
Telephone: (212) 468-8000
Facsimile: (212) 468-7900
E-mail: JPeck@mofo.com
GLee@mofo.com
TFoudy@mofo.com
AKissner@mofo.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/3xFX406
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70 billion,
a 68% debt-to-GDP ratio and negative economic growth in nine of the
last 10 years.
The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.
The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III of
2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').
The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017. On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").
U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases. The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that
may be referred to her by Judge Swain, including discovery
disputes, and management of other pretrial proceedings.
Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.
McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets Inc.
is the Board's municipal investment banker.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico
Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.
O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.
The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and chair of a committee to review professionals' fees.
PUERTO RICO: Morgan, Correa 10th Update on QTCB Noteholder Group
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Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the law firms of Morgan, Lewis & Bockius LLP and Correa-Acevedo &
Abesada Law Offices, PSC submitted a tenth supplemental verified
statement to disclose an updated list of QTCB Noteholder Group in
the Chapter 11 cases of The Commonwealth of Puerto Rico, et al.
On August 16, 2017, the QTCB Noteholder Group submitted the
Verified Statement of the QTCB Noteholder Group Pursuant to
Bankruptcy Rule 2019 [ECF No. 1053]. On August 14, 2018, the QTCB
Noteholder Group submitted the Supplemental Verified Statement of
the QTCB Noteholder Group Pursuant to Bankruptcy Rule 2019 [ECF No.
3765], corrected, see Corrected Supplemental Verified Statement of
the QTCB Noteholder Group Pursuant to Bankruptcy Rule 2019 [ECF No.
3778]. On January 18, 2019, the QTCB Noteholder Group submitted the
Second Supplemental Verified Statement of the QTCB Noteholder Group
Pursuant to Bankruptcy Rule 2019 [ECF No. 4871]. On June 26, 2019,
the QTCB Noteholder Group submitted the Third Supplemental Verified
Statement of the QTCB Noteholder Group Pursuant to Bankruptcy Rule
2019 [ECF No. 7659]. On September 5, 2019, the QTCB Noteholder
Group submitted the Fourth Supplemental Verified Statement of the
QTCB Noteholder Group Pursuant Bankruptcy Rule 2019 [ECF No.
8618].
On February 19, 2020, the QTCB Noteholder Group submitted the Fifth
Supplemental Verified Statement of the QTCB Noteholder Group
pursuant to Bankruptcy Rule 2019 [ECF No. 11293]. On July 3, 2020,
the QTCB Noteholder Group submitted its Sixth Supplemental Verified
Statement of the QTCB Noteholder Group Pursuant to Bankruptcy Rule
2019 [ECF No. 13548]. On October 20, 2020, the QTCB Noteholder
Group submitted its Seventh Supplemental Verified Statement of the
QTCB Noteholder Group Pursuant to Bankruptcy Rule 2019 [ECF No.
14708]. On March 6, 2021, the QTCB Noteholder Group submitted its
Eighth Supplemental Verified Statement of the QTCB Noteholder Group
Pursuant to Bankruptcy Rule 2019 [ECF. No. 15968]. On April 15,
2021, the QTCB Noteholder Group submitted its Ninth Supplemental
Verified Statement of the QTCB Noteholder Group Pursuant to
Bankruptcy Rule 2019 [ECF. No. 16445].
As of July 6, 2021, members of the QTCB Noteholder Group and their
disclosable economic interests are:
Commonwealth Bonds:
Public Improvement Ref. Bonds, Series 1998: $905,000
Public Improvement Bonds of 1999: 1,565,000
Public Improvement Bonds of 2002, Series A: 16,990,000
Public Improvement Ref. Bonds, Series 2002 A: 44,339,000
Public Improvement Bonds of 2003, Series A: 6,311,000
Public Improvement Ref. Bonds, Series 2003 A: 5,330,000
Public Improvement Bonds of 2004, Series A: 28,653,000
Public Improvement Bonds of 2005, Series A: 24,401,000
Public Improvement Ref. Bonds, Series 2006 A: 7,505,000
Public Improvement Bonds of 2006, Series A: 30,217,000
Public Improvement Ref. Bonds, Series 2006 B: 17,744,000
Public Improvement Bonds of 2006, Series B: 8,365,000
Counsel represents only the QTCB Noteholder Group and does not
represent or purport to represent any other entities other than the
QTCB Noteholder Group with respect to the Debtors' Title III
cases.
In addition, neither the QTCB Noteholder Group nor any member of
the QTCB Noteholder Group (a) assumes any fiduciary or other duties
to any other creditor or person and (b) does not purport to act,
represent or speak on behalf of any other entities in connection
with the Debtors' Title III cases.
Nothing contained in this Tenth Supplemental Statement is intended
to or should be construed as (a) a limitation upon, or waiver of
any right to assert, file and/or amend its claims in accordance
with applicable law and any orders entered in this or any other
related Title III cases by any QTCB Noteholder Group member, its
affiliates or any other entity, or (b) an admission with respect to
any fact or legal theory.
Additional holders of QTCBs may become members of the QTCB
Noteholder Group, and certain members of the QTCB Noteholder Group
may cease to be members in the future. The QTCB Noteholder Group,
through its undersigned Counsel, reserves the right to amend or
supplement this Tenth Supplemental Statement as necessary for that
or any other reason in accordance with the requirements set forth
in Bankruptcy Rule 2019 and the Order.
Co-Counsel for the QTCB Noteholder Group can be reached at:
Morgan, Lewis & Bockius LLP
Kurt A. Mayr, Esq.
David L. Lawton, Esq.
Shannon B. Wolf, Esq.
One State Street
Hartford, CT 06103-3178
Tel: (860) 240-2700
Fax: (860) 240-2701
E-mail: kurt.mayr@morganlewis.com
david.lawton@morganlewis.com
shannon.wolf@morganlewis.com
- and -
Correa-Acevedo & Abesada Law Offices, PSC
Sergio Criado, Esq.
Centro Internacional de Mercadeo, Torre II
# 90 Carr. 165, Suite 407
Guaynabo, P.R. 00968
Tel: (787) 273-8300
Fax: (787) 273-8379
E-mail: scriado@calopsc.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/2UOyrjs
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70 billion,
a 68% debt-to-GDP ratio and negative economic growth in nine of the
last 10 years.
The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.
The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III of
2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').
The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017. On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").
U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases. The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that
may be referred to her by Judge Swain, including discovery
disputes, and management of other pretrial proceedings.
Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.
McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets Inc.
is the Board's municipal investment banker.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico
Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.
O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.
The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and chair of a committee to review professionals' fees.
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S U B S C R I P T I O N I N F O R M A T I O N
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