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Puerto Rico Bankruptcy Committee Reconstitution Sought

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Commonwealth of Puerto Rico’s ad hoc group of general obligation bondholders (“GO Group”) filed with the U.S. Bankruptcy Court a motion to reconstitute the official committee of unsecured creditors.

The motion explains, “The GO Group seeks to rectify an obvious and unprecedented anomaly. The Oversight Board and Commonwealth assert that Constitutional Debtholders are the largest class of unsecured creditors in these Title III Cases. The Committee concedes that although Constitutional Debtholders are a ‘very important’ group to which the Committee owes fiduciary duties, they remain ‘unrepresented.’ The United States Trustee has nonetheless refused to appoint a single Constitutional Debtholder to the Committee, despite several holders, including two members of the GO Group, being willing to serve.”

In addition, “The GO Group is unaware of any case where the largest purportedly unsecured creditor was purposefully excluded from the official unsecured creditors’ committee. Rather, the Bankruptcy Code and the overwhelming weight of decisions interpreting the Bankruptcy Code provide that the Committee must adequately represent all of the Commonwealth’s allegedly unsecured creditors, and must specifically represent the different kinds of the Commonwealth’s allegedly unsecured creditors.” The Court scheduled an August 9, 2017 hearing on the motion.

Read more Puerto Rico bankruptcy news.

The post Puerto Rico Bankruptcy Committee Reconstitution Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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