Puerto Rico Prepa bondholders lose bid to delay plan hearing

By Sarah Lizee

Olympia, Wash., Feb. 14 – A group of Puerto Rico’s electric power authority (Prepa) bondholders that had asked to delay a March 4 plan confirmation in light of an appeal filed by the group were unsuccessful in their request, according to court documents.

Judge Laura Taylor Swain denied the motion in an order filed Monday with the U.S. District Court for the District of Puerto Rico.

As a reminder, on Jan. 29, the U.S. Court of Appeals for the First Circuit heard arguments with respect to the group’s appeal and the financial oversight board’s cross-appeal regarding the bondholders’ liens and the amount of their claim.

The bondholders said the argument followed a highly accelerated briefing schedule, established by the Court of Appeals after being informed of the pending confirmation hearing.

“The unusual speed with which the Court of Appeals addressed this matter, coupled with the amount of time given to the parties for oral argument, suggests that the court intends to rule promptly on the key issues in the appeals,” the group said in the motion.

The bondholders noted that several objections to the plan have been filed, and the confirmation hearing will be highly contested.

“While the outcome of the appeal is uncertain, that outcome may require significant amendments to the plan and disclosure statement, or even a new plan,” the group said.

The Commonwealth of Puerto Rico announced its Title III petition filing in the U.S. District Court for the District of Puerto Rico on May 3, 2017. The case number is 17-03283.

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