Puerto Rico official committee requests denied by bankruptcy court

By Caroline Salls

Pittsburgh, Aug. 14 – Motions for appointment of an official Puerto Rico municipalities committee and an additional committee of government employees and active pension plan participants for the commonwealth’s Title III case were denied Friday, according to orders filed with the U.S. Bankruptcy Court for the District of Puerto Rico.

As previously reported, an informal committee of Puerto Rico’s municipalities requested appointment of the official municipalities committee.

“The 78 municipalities of the commonwealth not only need a committee, they are entitled to one,” the motion said.

The informal committee said the treatment the municipalities will receive, both during the reorganization process and under any plan that might be confirmed, will be different from any other creditors or parties in interest.

“No other official committee either can or wants to represent the claims, needs, and viewpoints for which 78 mayors are responsible,” the municipalities said.

“At the same time, the prospect of each municipality’s taking an independent position before the court would waste their money and this court’s time.”

Meanwhile, the University of Puerto Rico Retirement System Trust asked the court to order appointment of an additional committee of government employees and active pension plan participants.

According to the motion, none of the members of the official retiree committee are active trust participants.

“At present, it is unclear at best whether the retiree committee purports to represent only the interests of retirees or also the interests of active government employees and pension plans participants,” the motion said.

The Commonwealth of Puerto Rico announced its Title III petition filing on May 3. The case number is 17-03283.

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