Puerto Rico Employees Retirement System

Judge Laura Taylor Swain also rejected a motion for a court-appointed investigation of mediation participants engaging in insider trading of Puerto Rico bonds.

The board threatened legal action if the local government continued to implement the three pension laws passed in August.

Puerto Rico Oversight Board says that National Public Finance Guarantee could do "confirmation discovery" at its own expense.

Along with substantial reductions in payouts to the GO and PBA bondholders, the board is proposing a near wipe out for HTA, ERS, PRIFA rum, MBA, and CCDA bondholders.

Highways and Transportation Authority collections are also behind expectations.

Swain says the challenge would be considered in two stages.

The Oversight Board has asked for delays concerning non-central government bonds.

Judges said the district court judge was reasonable in her treatment of the case differently from that of a corporate bankruptcy.

The plan still faces formidable opposition from multiple parties.

Puerto Rico-based creditors took steps Tuesday to oppose the two biggest proposed restructurings of the commonwealth's bonds.

The governor tells the judge it makes no sense to commence a process aimed at approving the plan without her support.

Puerto Rico Bankruptcy Chief Mediator Barbara Houser said that the bankruptcy judge should rule on issues concerning "nonsecured creditors."

Deal offers up to 76% for Public Building Authority bonds but as little as 3% for $16B of bonds subordinated to the GO debt in Puerto Rico's constitution.

Recoveries would be from 65% to 77% for general obligation and Public Building Authority bondholders.

The ERS bondholders' lien didn't survive the bankruptcy filing, the First Circuit Court of Appeals said.

The bondholders appeal to the U.S. First Circuit Court in Boston.

Swain allowed ERS bondholders' other lines of argument to continue.

Swain insists that holders of 2012 and 2014 bonds, which have been challenged as illegal, be given litigation notice.

Bankruptcy mediator Barbara Houser recommends litigation over $22 billion in bonds should resume in January and February.

The motion is part of the bondholders' attack on a plan to give them 15 cents on the dollar.