Puerto Rico Title III bankruptcy judge Laura Taylor Swain approved hiring Phoenix Management Services LLC as financial advisor for the mediation process between creditors in the island's record-setting debt restructuring.

Martha Kopacz will lead the financial advisors Phoenix Management LLC in Puerto Rico's Title III mediation.

In an order signed Monday, Swain said the Title III creditors must pay for Phoenix’s services retroactively to Aug. 4, when Phoenix was hired. The creditors participating in mediation requested last month that a financial advisor be hired.

Swain told Phoenix to take direction from the mediation team.

The Phoenix team is being led by Martha Kopacz, a Phoenix managing director. Kopacz led a Phoenix team that reviewed Detroit’s bankruptcy plan in 2014 for the Detroit bankruptcy judge.

The Title III process started for the general obligation bonds on May 3. Since then other bond-types have been added to the case. In June Swain named members to the mediation group.

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