On July 2, 2017, the Financial Oversight and Management Board for Puerto Rico (“FOMB”), at the request of then-Governor Rosselló Nevares, commenced a Title III case for the Puerto Rico Electric Power Authority (“PREPA”) by filing a petition for relief pursuant to Section 304(a) of PROMESA, 48 U.S.C. § 2164(a), in the United States District Court for the District of Puerto Rico. As such, PREPA is currently a debtor in a proceeding under the Title III of PROMESA, 48 U.S.C. § 2161, et seq. Pursuant to Section 315(b) of PROMESA, 48 U.S.C. § 2175(b), the FOMB serves as PREPA’s representative in its proceeding under the Title III of PROMESA.
On May 3, 2019, PREPA, AAFAF, the FOMB, members of the Ad Hoc Group of PREPA Bondholders, Assured Guaranty Corp. and Assured Guaranty Municipal Corp., Syncora Guarantee Inc., National Public Finance Guarantee Corporations, among others, entered into a Restructuring Support Agreement (the “RSA”) which outlined the terms of a potential restructuring of PREPA and a settlement of related claims. This agreement was terminated by AAFAF on March 8, 2022, following certain changes in circumstances that demanded a revision to the RSA’s terms.
On March 18, 2022, the Court directed the FOMB to negotiate and/or determine the parameters of an appropriate plan of adjustment for PREPA and set deadlines for filings related to the plan process.
PREPA’s Title III proceeding is being jointly administered with the Commonwealth’s Title III proceeding for procedural purposes only in the United States District Court for the District of Puerto Rico under Case No. 17-BK-03283-LTS. The Title III case docket can be accessed for free by clicking here.