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Puerto Rico Bankruptcy Objection Filed

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The Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF) filed with the U.S. Bankruptcy Court an objection to the motion of the American Federation of State, County and Municipal Employees; AFL-CIO and American Federation of Teachers for an order to permit the resolution of employment arbitration and grievance proceedings.

The objection asserts, “The Commonwealth does not object to Movants’ requested relief to modify the Title III Stay with respect to Prepetition and Postpetition Actions – including disciplinary and discharge matters – (but not to the collection of any monetary award against the Commonwealth), to the extent that such actions do not affect the Fiscal Plan or the Title III cases. The Commonwealth conveyed its position to Movants in an effort to avoid unnecessary briefing.”

In addition, “However, Movants were unwilling to enter into a stipulation that would provide it with complete relief, wasting critical time and resources of the Commonwealth and this Court. Given the circumstances and the Commonwealth’s willingness to permit Movants to proceed with the Actions, the Commonwealth respectfully submits that the Court (i) enter an order modifying the Title III Stay in accordance with this Response, and consistent with the August 22 Order (see ECF No. 1125), and (ii) need not further consider the legal issues raised by Movants so as to avoid rendering an advisory opinion.”

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