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Besosa allows Financial Oversight Board to intervene in bondholder suits

By on October 13, 2016

The United States District Court for the District of Puerto Rico (CB photo/ Juan José Rodríguez)

The United States District Court for the District of Puerto Rico (CB photo/ Juan José Rodríguez)

SAN JUAN – U.S. Court Judge Francisco Besosa has granted the Financial Oversight and Management Board until Oct. 21 to file a motion intervening in four consolidated lawsuits whose plaintiffs are challenging the constitutionality of the Emergency Moratorium and Financial Rehabilitation Act.

The decision comes even though the plaintiffs in the cases objected to delays in the adjudication of their claims after the board, on Oct. 7, requested an extension to intervene in the lawsuits on behalf of the commonwealth.  

Besosa is slated to decide whether lawsuits filed by U.S. Bank Trust, Brigade Leveraged Capital Structures Fund Ltd, National Public Finance Guarantee Corp. and the Dionisio Trigo group of bondholders should be granted relief from the stay imposed by Puerto Rico Oversight, Management & Economic Stability Act, which expires in February.

A painting in the likeness of Judge Francisco Besosa is seen in this screenshot of www.prd.uscourts.gov

A painting in the likeness of Judge Francisco Besosa is seen in this screenshot of www.prd.uscourts.gov

He gave the plaintiffs until Oct. 28 to file their responses to the motion that the board must submit Oct. 21.

“Absolutely, no extensions of time will be allowed,” he said. The decision means a ruling in the cases may not come until early November.

The board also filed a motion asking the court to allow New York lawyers Michael Luskin and Stephan Hornung to appear as its advisers.

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