FOMB to present report today to bankruptcy court on the removal of most of its members

Judge Laura Taylor Swain

By The Star Staff

The Financial Oversight and Management Board (FOMB) is required to present a report today to the bankruptcy court regarding the impact of the recent removal of most of its board members.

Judge Laura Taylor Swain, who oversees the Title III bankruptcy proceedings, ordered the filing of this report earlier this month in response to President Donald Trump’s decision to fire six out of seven FOMB members.

These firings could signify a new strategy concerning the Puerto Rico Electric Power Authority (PREPA) in its Title III case. Judge Swain has also paused discussions on a motion from PREPA bondholders seeking a $3.7 billion administrative expense claim.

The FOMB was instructed to submit the report today, detailing “the status of its membership and the effects, if any, that these recent events will have on its participation in matters currently before the court,” according to Swain.

Earlier this month, the White House dismissed six of the seven members of the FOMB, which oversees Puerto Rico’s finances and represents the territory in its bankruptcy proceedings. Initially, five members were fired, followed by the dismissal of a sixth member a few days later.

The removed members include Board Chairman Arthur Gonzalez, Cameron McKenzie, Betty Rosa, Juan Sabater, Luis Ubiñas, and Andrew Biggs. This decision comes amid pressure from certain bondholders of the Puerto Rico Electric Power Authority, who are urging the public utility to pay its $8.5 billion bonded debt, which has hindered a debt adjustment plan for the utility. These bondholders have reportedly influenced the removal of the FOMB.

The White House has not announced replacements for the dismissed board members. Although this action does not dissolve the FOMB, it significantly incapacitates it in terms of decision-making since only one member remains.

These firings occurred after MAGA activist Laura Loomer, who allegedly has influence over President Trump, criticized the Board for spending $2 billion over the past decade in the bankruptcy case.