The Committee has reached a settlement with the Oversight Board that significantly improves projected recoveries for Class 58 Commonwealth general unsecured creditors.  Among other things, as a result of the Committee’s settlement, the Plan now provides cash consideration in the aggregate amount of $575 million to or for the benefit of Class 58 Commonwealth general unsecured creditors, representing a projected effective recovery rate of approximately 20%.  Separately, the Plan also provides cash consideration in the aggregate amount of $500,000 to or for the benefit of Class 66 ERS general unsecured creditors, representing a projected effective recovery rate of 100%.  The Committee recommends that creditors in Class 58 and Class 66, for whom the Committee serves as a fiduciary representative, vote to accept the Plan (for more on the Committee’s settlement and recommendation, please click here to view the Committee’s recommendation letter, which you should have received with your ballot. To read the disclosure statement, click here (see pages 477-479 for treatment of Class 58 claims, and pages 487-488 for treatment of Class 66 claims), and to read the Plan, click here (see pages 104-105 for treatment of Class 58 claims, and pages 109-110 for treatment of Class 66 claims).*

The voting deadline in connection with the Plan of Adjustment for the Commonwealth of Puerto Rico is October 18, 2021, at 5:00 p.m. (Atlantic Time):

The Committee invites you to join one of the Informative Sessions regarding the process for voting on the Plan of Adjustment that will be held at Universidad Universal, 269 C. México, San Juan, 00917, Puerto Rico. These sessions will take place on September 23, 2021, at 9:00 a.m. and September 24, 2021, at 12:00 p.m.  Space is limited, so we encourage you to confirm your attendance by sending an email to douglassbarron@paulhastings.com. Valid evidence of vaccination will be required at the entrance. In addition, a virtual Informative Session will be held on October 2, 2021, at 10:00 a.m. You may register for this session by sending an email to douglassbarron@paulhastings.com (obviously, proof of vaccination will not be required for the virtual session).

It is our priority to keep you properly informed about the plan process, so you are able to make an informed decision about your vote on the Plan of Adjustment.

Cordially,

Official Committee of Unsecured Creditors

*THE SUMMARY OF THE TREATMENT OF GENERAL UNSECURED CREDITORS SET FORTH HEREIN IS QUALIFIED IN ITS ENTIRETY BY THE DISCLOSURE STATEMENT FOR THE SEVENTH AMENDED TITLE III JOINT PLAN OF ADJUSTMENT OF THE COMMONWEALTH OF PUERTO RICO, ET AL. [DOCKET NO. 17628] APPROVED BY THE COURT’S ORDER DATED AUGUST 2, 2021 [DOCKET NO. 17639].

INFORMATION PROVIDED TO YOU IN THIS EMAIL OR IN THE COMMITTEE’S INFORMATIVE SESSIONS IS FOR GENERAL INFORMATIONAL PURPOSES ONLY AND NOT FOR THE PURPOSE OF PROVIDING LEGAL ADVICE OF ANY NATURE, INCLUDING AS TO THE AMOUNT, NATURE, OR SECURED OR PRIORITY STATUS OF ANY CLAIM. YOU SHOULD CONSULT YOUR ATTORNEY TO OBTAIN LEGAL ADVICE WITH RESPECT TO ANY PARTICULAR ISSUE. RECEIVING THIS EMAIL OR ATTENDING AN INFORMATIVE SESSION DOES NOT CREATE AN ATTORNEY-CLIENT RELATIONSHIP WITH ANY ADVISOR TO THE CREDITORS’ COMMITTEE.