
By The Star Staff
The judge overseeing the Title III bankruptcy case of the Puerto Rico Electric Power Authority (PREPA) on Tuesday extended the litigation stay until Jan. 31, 2025.
U.S. District Judge Laura Taylor Swain also postponed until Feb. 5 the renewed motion of GoldenTree Asset Management LP and Syncora Guarantee Inc. which are seeking a relief from the automatic stay to seek the appointment of a receiver for PREPA. The monolines are seeking payment of their share of the $9 billion debt owed by the public utility, which has been in bankruptcy since 2017.
The judge’s order was made after the mediation team said it needed more time to attempt to achieve a consensual settlement to PREPA’s debt among the different parties. The decision means that a settlement of the bankruptcy case will not take place until next year.
“The Court having found the Mediation Team provided adequate and appropriate notice of the Notice and Report under the circumstances and that no other or further notice is required; and the Court having found good and sufficient cause exists for granting the relief set forth herein; it is hereby ordered that: the litigation stay imposed by the Stay Order is hereby extended through and including January 31, 2025, unless otherwise ordered by the Court,” the judge said.
Throughout the duration of the stay period, Swain ordered the parties to meet with the mediation team as directed by the mediation team, including the participation of principals.
She told the mediation team to file a report regarding the status of mediation discussions and whether any modification of the stay order is recommended prior to the expiration of the stay period.
The stay was previously extended to Nov. 13 following the request of the mediation team, which is handling talks between PREPA bondholders and the Financial Oversight and Management Board.
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