Court of Appeals confirms decision by District Court Judge Taylor Swain dismissing GO bondholders' case
On March 26, 2019, the First Circuit Court of Appeals affirmed the District Court’s January 30, 2018 order dismissing the complaint filed by certain general obligation bondholders (GO Bondholders) in the ACP Master, Ltd. adversary proceeding.
In their complaint, the GO Bondholders claimed that they had a priority and property interest in certain government “restricted revenues” and sought, among other relief, a declaratory judgment that those revenues could be used only to pay the GO Bondholders.
The Official Committee of Retired Employees of the Government of Puerto Rico (COR) intervened to assert arguments on behalf of the retirees.
The COR argued in court filings and oral presentations in both the District Court and the First Circuit that the GO Bondholders’ lawsuit should be dismissed because it was premature, an improper attempt to end run the plan of adjustment process under PROMESA, and an improper interference with PR’s exercise of its governmental powers.
The First Circuit’s opinion affirming the District Court incorporated many of the COR’s arguments.
The COR represents 167,000 government retirees and will continue to advocate for the interests of retirees. The COR invites all retirees of the PR government to follow www.porturetiro.com or the COR’s FB page to stay informed about the potential impact of Title III proceedings over pension and pension benefits; and the eventual presentation of a Plan of Adjustment.
For more details on the lawsuit and District Court’s opinion click here or download the attached document.