Besosa stays liability claims against Puerto Rico government
SAN JUAN – As the first day of hearings into the bankruptcy petitions of the commonwealth and the Puerto Rico Sales Tax Financing Corp. (Cofina by its Spanish acronym) got underway, U.S. District Court Judge Francisco Besosa stayed all of the claims pending against the commonwealth government.
Two days after the May 1 stay contained in the Puerto Rico Oversight, Management and Economic Stability Act (Promesa) ended, the Financial Oversight & Management Board filed for bankruptcy on behalf of the commonwealth under Title III of the federal Promesa law. While the Title III bankruptcy process provided for a stay on all legal claims, it was not until this week that Judge Besosa stayed liability claims against the government.
The cases stayed Wednesday were Assured Guaranty Corp. v. Alejandro García Padilla; Financial Guaranty Insurance v. García Padilla; Brigade Leveraged Capital Structures v. Government Development Bank; National Public Finance Guarantee Corp. v. García Padilla; Trigo v. García Padilla; Lex Claims v. the commonwealth of Puerto Rico; Scotiabank de Puerto Rico v. García Padilla; Rodríguez Perelló v. Rosselló Nevares; Ambac Assurance Corp. v. commonwealth of Puerto Rico and Asociación Puertorriqueña de la Judicatura v. Financial Oversight & Management Board.