An investor in Puerto Rico Highways and Transportation Authority bonds
Peaje Investments LLC filed the lawsuit in the Puerto Rico District of the United States District Court on Monday. Peaje is the holder of more than $63 million in 1968 bonds from the authority.
PROMESA has put a stay on suits against Puerto Rico and its public bodies concerning its nonpayment of debt. However, section 405(e) (2) of PROMESA allows courts to grant relief from the stay if cause is shown. The section doesn't provide an explanation of what sort of cause needs be shown.
As part of the bonds owned by Peaje, PRHTA had pledged toll revenues; gasoline, crude oil and diesel taxes; annual motor vehicle license fees; and investment earnings towards the payment of the bonds. Puerto Rico has now diverted these first to pay general obligation bonds and now to support its General Fund.
Peaje also argues that the movement of the pledged revenues runs counter to PROMESA's prohibition of certain revenue transfers.
The suit's immediate goal is to have the court rule that this section is relevant to the situation with Peaje, its investments, and the actions taken by the Puerto Rico officials and the PRHTA. It is also challenging Puerto Rico's Emergency Moratorium and Financial Rehabilitation Act, adopted in April.
In this case Peaje has sued Puerto Rico Gov. Alejandro García Padilla, Puerto Rico Secretary of the Treasury Juan Zaragoza G-mez, Director of the Office of Management and Budget Luis Cruz Batista, PRHTA Executive Director Carmen Villar Prado, and the PRHTA.
After the court lifts the stay, Peaje states that it plans to commence an action against the respondents for what it says is their unlawful diversion of funds.
Peaje's lead lawyer in the case is Dora Monserrate Peñagaricano. She is an attorney at Monsarrate Simonet & Gierbolini, LLC based in Guaynabo, Puerto Rico.
Neither Puerto Rico nor the PRHTA immediately had a comment on the suit.
