Fiscal board adviser BGC Partners plans to dissolve

By THE STAR STAFF

An adviser to the Financial Oversight and Management Board whose fees were challenged by Puerto Rico Electric Power Authority (PREPA) creditors is shutting down.

Bloomberg, citing an unnamed source, reported earlier this month that BGC Partners plans to dissolve.

The oversight board hired BGC Partners in February 2024 to replace Citigroup Global Markets after Citi closed its municipal finance division. BGC was founded by three former Citi executives: David Brownstein, John Gavin and James Castiglioni. According to Bloomberg, the oversight board has been notified of BGC’s dissolution plans.

In September 2025, U.S. District Judge Laura Taylor Swain, who oversees PREPA’s bankruptcy case, granted non-settling bondholders additional time to object to BGC Partners Advisory’s $15.3 million fee application. The fees cover restructuring advisory work performed for the oversight board between February 2024 and September 2025, along with $8,280 in expenses.

The non-settling bondholders include GoldenTree Asset Management, Assured Guaranty, Syncora Guarantee, National Public Finance Guarantee Corp. and the PREPA Ad Hoc Group, which collectively hold or insure 61% of PREPA’s outstanding debt.

These creditors have also objected to fees charged by other firms, including O’Neill & Borges, Ernst & Young, and McKinsey & Company Puerto Rico Consulting.