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Fiscal board says claims in Puerto Rico bankruptcy total $7.2 billion so far

By on April 26, 2018

SAN JUAN – Puerto Rico’s Financial Oversight and Management Board said that as of April 23  it has received 7,298 proof of claims against the commonwealth and other island-government instrumentalities, for a registered total of $4.2 billion.

It also has $3 billion in aggregate amounts that are divided in 2,054 claims, according to a status motion submitted in U.S. District Court on Wednesday.

A total of $3.4 billion is owed according to 3,764 claims against the commonwealth, and 745 registered claims amount to $155 million related to Sales Tax Financing Corp. (Cofina by its Spanish acronym) debt.

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There is also $106 million in claims against the Highways and Transportation Authority (HTA), divided in 451 claims; $133 million against the Employees Retirement System in 1,744 claims filed; and $374 million sought from the Puerto Rico Electric Power Authority (Prepa) as part of 612 claims.

The aggregate amounts include $1.3 billion in 173 claims related to litigation and 1,152 claims for $1.2 billion in bond claims.

The deadline for a proof of claim to be filed and received against debtors under Promesa’s Title III bankruptcy proceedings is May 29.

On April 13, the fiscal oversight board published a request for proposals for claims management and reconciliation services for the debtors who are in bankruptcy under the federal law. The board is reviewing the proposals and expects to select a provider by May 11, after which time it will start the reconciliation process.

The fiscal board also informed the court that all of its mediation efforts are focused on resolving a dispute between commonwealth general obligation (GO) bondholders and Cofina bondholders over the legality of the corporation. The GO creditors contend that money going to Cofina should be used to pay them because their debt is guaranteed by the Constitution.

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