On May 5, 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 Sales Tax Financing Corporation (“COFINA”, by its Spanish acronym) 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 (the “District Court”). As such, COFINA became a debtor in a proceeding under 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 COFINA’s representative in its Title III proceeding. COFINA’s Title III proceeding is being jointly administered with the Commonwealth’s Title III proceeding for procedural purposes only in the District Court under Case No. 17-BK-03283-LTS. The case docket can be accessed for free by clicking here.
On January 16 and 17, 2019, the District Court held an evidentiary hearing to consider the confirmation of the Third Amended Title III Plan of Adjustment of Puerto Rico Sales Tax Financing Corporation (the “Plan”).
On February 5, 2019, the District Court entered the Amended Memorandum of Findings of Fact and Conclusions of Law in Connection with Confirmation of the Third Amended Title III Plan of Adjustment of Puerto Rico Sales Tax Financing Corporation [ECF No. 5053] (the “Memorandum”) and the Amended Order and Judgment Confirming the Third Amended Title III Plan of Adjustment of Puerto Rico Sales Tax Financing Corporation [ECF No. 5055] (the “Confirmation Order”). Pursuant to the Memorandum and Confirmation Order, the Plan was confirmed pursuant to Section 314(b) of PROMESA.
On February 12, 2019 (the “Effective Date”), the Plan became effective. On the Effective Date, pursuant to sections 19.1 and 19.5 of the Plan, COFINA fulfilled its Plan obligations by distributing, or causing to be distributed, Cash (as defined by the Plan) and restructured COFINA Bonds to The Bank of New York Mellon (“BNYM”), in its capacity as trustee and paying agent for the restructured COFINA Bonds. BNYM distributed the Cash and restructured COFINA Bonds to The Depository Trust Company (“DTC”). Restructured COFINA Bonds and Cash were allocated by DTC to participants in accordance with the allocation procedures described in a notice of distribution to holders filed by BNYM in the Electronic Municipal Market Access system on February 12, 2019. Participants and nominees (as applicable) are responsible for allocating the restructured COFINA Bonds and Cash they receive to beneficial holders.
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