Thu 08/10/2023 17:12 PM
Share this article:
Relevant Document:
Extension Motion

The PROMESA oversight board today filed a motion seeking an additional one-week extension of its deadline to file a proposed third amended plan of adjustment for PREPA, from Aug. 11 to Aug. 18.

The motion explains that the board “has reached an agreement in principle with a substantial number of holders of PREPA bonds to settle their respective claims against PREPA,” and the parties “are currently in the process of finalizing the necessary documents to effectuate this agreement, including but not limited to a bond purchase agreement and restructuring support agreement,” or RSA, which “will be open for all PREPA bondholders to join.”

The oversight board requests the extension, which would also apply to the Aug. 11 deadline for the oversight board to file an informative motion explaining its position on the need for a supplemental disclosure statement and re-solicitation of the plan, in order to “allow for the necessary time to finalize the aforementioned documents and prepare a Third Amended Plan reflecting the agreements in the RSA.”

The motion also seeks to extend from Aug. 16 to Aug. 23 the deadline for filing a status report with various parties' proposed litigation schedules for confirmation proceedings and a proposed order establishing the confirmation schedule.

According to the motion, “if the extension is granted, it may lead to another significant party settling its claim, but the Oversight Board will not request another extension to further accommodate other parties (emphasis added).” In addition, “the Oversight Board is authorized to represent the Mediation Team fully supports the requested deadline extensions as they satisfy the conditions the Mediation Team established for its support and hopes this issue will not recur.”

The motion cautions that “the specific terms of the RSA remain subject to mediation confidentiality” and “parties should avoid making assumptions regarding the RSA’s terms or relying on anything other than public filings made by the Oversight Board as it pertains to the terms of the Third Amended Plan” (emphasis added).

As reported yesterday, BlackRock is believed to have been leading recent settlement talks, with both Nuveen and Franklin being supportive of the effort.
Share this article:
This article is an example of the content you may receive if you subscribe to a product of Reorg Research, Inc. or one of its affiliates (collectively, “Reorg”). The information contained herein should not be construed as legal, investment, accounting or other professional services advice on any subject. Reorg, its affiliates, officers, directors, partners and employees expressly disclaim all liability in respect to actions taken or not taken based on any or all the contents of this publication. Copyright © 2024 Reorg Research, Inc. All rights reserved.
Thank you for signing up
for Weekly Insights!