The Committee has been an active participant in the Title III cases and has achieved significant results on behalf of unsecured creditors of the Title III Debtors. Among other things:

  • The Committee litigated, on behalf of the Commonwealth, the question of whether billions of dollars in sales and use taxes are property of the Commonwealth or COFINA, which litigation resulted in a settlement that (subject to court approval) will allow the Commonwealth to retain $28 billion (nominal dollars) in such taxes over the next 40 years. Click here for a recap from the Committee on the Commonwealth-COFINA Litigation and Settlement.
  • The Committee obtained significant improvements in the Government Development Bank (“GDB”) restructuring, including (a) up to $30 million in additional distributions to Title III Debtors, (b) a $312 million reduction of GDB’s claim against the Commonwealth, (c) the release by GDB of a claim of over $324 million against PREPA on account of funds PREPA allegedly withdrew from GDB while GDB was insolvent, and (d) the elimination of third party releases for former GDB officers and directors (thereby preserving such claims for the benefit of the Commonwealth). Click here for an update from the Committee on the GDB Restructuring.
  • The Committee has continuously advocated for a full and complete investigation of the causes of Puerto Rico’s fiscal crisis with the goal of identifying claims that can be pursued for the benefit of unsecured creditors. Click here for an update from the Committee on the Final Report from the Oversight Board’s Independent Investigator, Kobre & Kim.
  • The Committee pushed for a more creditor-friendly claims-filing process and obtained a one-month extension of the claims bar date, which extension allowed tens of thousands of creditors to file their claims. In addition, the Committee organized information sessions for creditors in San Juan, Mayagüez, Ponce, and Arecibo, assisting hundreds of creditors with the claims-filing process. Click here for an update from the Committee on the claims resolution process.