The Puerto Rico Oversight Board is considering filing briefs in four Puerto Rico bond lawsuits.

In Friday's Oversight Board meeting board Chairman José Carri-n said four groups of litigants were seeking the lifting of the Puerto Rico Oversight, Management, and Economic Stability Act's automatic stay on cases. On Sept. 22 and 23 U.S. District Court for Puerto Rico Judge Francisco Besosa held a consolidated hearing in the four cases on whether to lift the stay.

The cases are Brigade Leveraged Capital Structure Fund et al. v. Alejandro García Padilla et al., Dionisio Trigo Gonzalez et al. v. Alejandro García Padilla et al., National Public Finance Guarantee et al. v. Alejandro García Padilla et al., and U.S. Bank Trust National Association v. Commonwealth of Puerto Rico et al.

Under PROMESA the board has the right to intervene in any action against Puerto Rico, its authorities or public corporations, Carri-n said Friday.

On Oct. 7, the last day to file, the board filed a motion for a two week extension to file a brief on the cases' stays, Carri-n said. On Thursday, Oct. 13, Judge Besosa granted the extension to Oct.21.

"The board is evaluating whether it desires to intervene in these consolidated actions," Carri-n said. If it files a brief with its position, it will file it by Oct. 21.

On Oct. 7 Alejandro García Padilla hailed the board's petition for an extension saying, "I am confident that as a result of its analysis of these cases, the board will join with the position of my administration of stopping unnecessary judicial proceedings so that the debt restructuring can be addressed in an orderly and comprehensive manner."

Puerto Rico attorney John Mudd told The Bond Buyer in an email that it's possible the judge may lift the stays in the Brigade and/or Trigo Gonzalez cases. He said he expects Besosa to issue a decision on the stays in November.

 

 

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