The Court’s decision ensures that bondholders may not claim rights on emergency funds.
While, the people of Puerto Rico struggle to overcome the devastation left by Hurricane María, the Official Committee of Retirees of the Commonwealth Government of Puerto Rico (COR, for its acronym in Spanish) appointed by the United States Trustee continues its efforts to defend and guarantee the collective rights and well-being of government pensioners in the process of debt restructuring under Tittle III of PROMESA.
In this regard, on October 19, 2017 COR filed a statement with the United States District Court for Puerto Rico supporting completely a motion submitted by the Financial Oversight and Management Board for Puerto Rico (the Board) and the Fiscal Agency and Financial Advisory Authority (AAFAF, for its acronym in Spanish) to guarantee that the federal emergency and relief funds granted to the Government of Puerto Rico will be protected for their intended use without interference from claims by creditors.
The Board claims that Puerto Rico and its residents have an urgent need for the funds that are the subject of this Motion, and the Federal Government requested that the Board and AAFAF obtain the relief requested in this Motion before additional funds are granted to the Government of Puerto Rico.
In a hearing held on October 25, Judge Laura Taylor Swain approved the motion submitted by the Board to establish that creditors cannot claim rights over the emergency and relief funds granted to Puerto Rico by the Federal Emergency Management Agency (FEMA), or by any other federal agency in light of the storm.
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