Fiscal board proposes a pair of amendments to HTA debt adjustment plan
By The Star Staff
The Financial Oversight and Management Board for Puerto Rico proposed Thursday two amendments to the Puerto Rico Highways and Transportation Authority (HTA) debt restructuring plan that seek to bring the authority’s bankruptcy to an end.
At a Wednesday hearing to consider confirmation of the Fifth Amended Title III Plan of Adjustment of the Puerto Rico Highways and Transportation Authority, which would reduce HTA’s debt by 80%, the oversight board proposed a modification to Section 1.10 of the HTA Plan to resolve Finca Matilde’s objections. Finca Matilde is fighting attempts to reduce the amount it is getting as part of an eminent domain litigation.
The amendment reads: “Notwithstanding anything to the contrary herein, (x) Claims allowed solely for the purpose of voting to accept or reject the HTA Plan pursuant to an order of the Title III Court shall not be considered “Allowed” hereunder unless otherwise specified herein or by order of the Title III Court, (y) for any purpose under the HTA Plan, except with respect to amounts that are determined by a Final Order to be just compensation attributable in connection with the allowance of an Eminent Domain/Inverse Condemnation Claim and treatment thereof pursuant to the terms and provisions of Section 19.1 hereof, “Allowed” shall not include interest, penalties, or late charges arising from or relating to the period from and after the HTA Petition Date, and (z) “Allowed” shall not include any Claim subject to disallowance in accordance with section 502(d) of the Bankruptcy Code.”
The oversight board also took steps to correct certain transcription errors to say that “If the United States Supreme Court reverses this portion of the Commonwealth Confirmation Order and Commonwealth Findings of Fact and Conclusions of Law, the HTA Plan provides that the Eminent Domain/Inverse Condemnation Claims will receive payments from HTA equal to, and on the same timeframe as, the payments to be made to holders of Allowed HTA General Unsecured Claims entitled to the same treatment as other holders of HTA General Unsecured Claims.”
Meanwhile, the judge gave the parties more time to negotiate certain objections brought on by HTA Insured Bondholder Group related to acceleration clauses.