Thursday, June 30, 2022

Retirees, unsecured creditor committees named in Puerto Rico’s bankruptcy cases

By on June 15, 2017

A screen capture of The U.S. Trustee program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.

SAN JUAN – Guy G. Gebhardt, the acting U.S. Trustee in charge of Puerto Rico’s bankruptcy cases under Title III of Promesa, appointed Thursday committees for unsecured creditors and retirees that will be in charge of representing and negotiating in favor of these groups.

The retiree committee includes Blanca Paniagua, president of the United Public Servants’ (SPU by its Spanish initials) retirees chapter; as well as José Marín, Juan Ortiz, Carmen Núñez, Lydia Pellot, Marcos A. López, Miguel Fabre, Milagros Acevedo and Rosario Pacheco.

In the case of unsecured creditors, its committee includes Total Petroleum—to whom the government owes more than $11.5 million—Puerto Rico Hospital Supply, Unitech and Genesis Security. Also on the list is Doral Financial Corp., the parent company of the defunct local bank that still claims it is owed money by the commonwealth government.

The committee of unsecured creditors of the commonwealth also includes the American Federation of Teachers and the Service Employees International Union.

As for unsecured creditors of the Sales Tax Financing Corp. (Cofina by its Spanish acronym), Gebhardt indicated he will not appoint a committee for them at this time.

On Wednesday, Judge Laura Taylor Swain, who is in charge of the island’s bankruptcy proceedings under Title III, named five federal judges who will serve as mediators between the government, the fiscal control board and the commonwealth’s different creditor groups in a bid to strike agreements and make way for the restructuring of a large chunk of Puerto Rico’s debt. The island has roughly $73 billion in debt, without taking into consideration the over $40 billion in unfunded pension liabilities.

Robert F. Kennedy Department of Justice Building, Friday, June 19, 2015, in Washington. (AP Photo/Andrew Harnik)

You must be logged in to post a comment Login