OVERSIGHT BOARD FILES MOTION RELATED TO PREPA PLAN OF ADJUSTMENT
Request Reopening of the Confirmation Hearing Record to Value Non-Settling Bondholders’ Share of PREPA’s Net Revenues; Believes Plan is Confirmable
San Juan, PR – June 17, 2024 – The Financial Oversight and Management Board for Puerto Rico announced today that it filed an informative motion with the U.S. District Court for the District of Puerto Rico with respect to the U.S. Court of Appeals for the First Circuit’s opinion determining the extent of the bondholders’ collateral and ruling that the bondholders’ claim is a non-recourse claim against the Puerto Rico Electric Power Authority (PREPA) so that they have no allowable deficiency claim beyond the value of the collateral.
In the motion, the Oversight Board informed the Court and parties in interest how it plans to proceed. The Oversight Board plans to request a reopening of the confirmation hearing record for the limited purpose of valuing the non-settling bondholders’ share of the bonds’ collateral, namely PREPA’s net revenues and showing the court how such value as determined by the court will be paid.
“We continue to believe the PREPA Plan of Adjustment, as adjusted to reflect the appellate ruling, can be confirmed after a hearing limited to the collateral value and its payment,” said the Oversight Board’s Chairman David Skeel.