| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers E > Headlines for Employees Retirement System of the Government of the Commonwealth of Puerto Rico > News item |
Puerto Rico financial board, bondholders fight attempt to stay HTA exit
By Sarah Lizee
Olympia, Wash., Nov. 1 – The Commonwealth of Puerto Rico’s financial oversight and management board and bondholders of the commonwealth’s Highways and Transportation Authority (HTA) both challenged a motion to stay the HTA’s emergence from Title III bankruptcy, according to court documents filed with the U.S. District Court for the District of Puerto Rico.
Following confirmation of the HTA’s Title III plan on Oct. 12, the Velazquez group, representing a group of HTA employees, requested to delay the implementation of the plan pending the group’s appeal.
The Velazquez group challenges the HTA plan’s discharge of its asserted wage claims relating to the implementation of federal law.
The financial board argued that the Velazquez group hasn’t shown it is likely to succeed on appeal.
“This court previously considered and rejected each of the arguments the Velazquez group intends to press on appeal,” the board said.
“The court’s prior ruling and reasoning were correct and demonstrated there are no serious questions raised by the Velazquez group’s position.”
The financial board said the Velazquez group is asking for the stay without true regard of the interests of the HTA and the thousands of creditors who will be prejudiced by a stay.
“Moreover, any delay in the implementation of the HTA plan could imperil HTA’s successful restructuring, an indispensable piece to Puerto Rico’s fiscal recovery and access to capital markets,” the board added.
The bondholder group shared similar concerns, adding that the requested stay could inflict millions of dollars in losses, even if only quantifiable damages are considered, and then only those of bondholders.
The Commonwealth of Puerto Rico announced its Title III petition filing on May 3, 2017. The case number is 17-03283.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.