Fiscal board modifies PREPA’s 3rd debt adjustment plan for a 5th time
By The Star Staff
The Financial Oversight and Management Board has filed a fifth modified third amended debt adjustment plan for the bankrupt Puerto Rico Electric Power Authority (PREPA) that reflects payment in full of eminent domain and inverse condemnation claims.
The modified debt adjustment plan was filed Wednesday, a day after U.S. District Judge Laura Taylor Swain said she will request minor changes to the plan’s disclosure statement, which was approved. On Tuesday, the court heard oral arguments in connection with PREPA’s petition for approval of the supplemental disclosure statement, the voting record date, the plan’s confirmation schedule, and the rest of the procedures related to the stakeholders’ vote on the plan.
The changes include a modification to the definition of eminent domain and inverse condemnation claim, which means a claim arising from or related to an eminent domain proceeding. Inverse condemnation entails the taking of a property for public use without due process or compensation.
The plan was modified to remove the eminent domain claims from the definition of general unsecured claim, which also does not include pensions. Eminent domain claims are now Class 15.
A holder of an eminent domain or inverse condemnation claim will receive the amount of monies on deposit with the commonwealth Court of First Instance with respect to the condemned property.
“Upon the occurrence of a Final Order determining the validity and amount of just compensation attributable to an eminent domain/Inverse Condemnation Claim, each Holder of an Allowed Eminent Domain/Inverse Condemnation Claim shall be paid in cash from reorganized PREPA,” the document notes.