By The Star Staff
The University of Puerto Rico (UPR) has extended through November the period of its 19th standstill agreement on certain bonds.
The information is contained in a filing to the markets dated June 5.
For purposes of the litigation standstill contained in the agreement, the compliance period will be extended through and including Nov. 30, 2023. In consideration for extending the compliance period through and including Nov. 30, UPR will make certain transfers to the trustee, which is U.S. Bank, to hold or to make payments or distributions as required under the Trust Agreement, and the failure to make any such payment, if not cured within one business day, shall result in a termination of the compliance period.
The transfers are:
a. $2,209,534.24 (the “June 2023 Payment”) on or before June 23, 2023.
b. $3,973,018.15 (the “July 2023 Payment”) on or before July 25, 2023.
c. $3,973,018.15 (the “August 2023 Payment”) on or before Aug. 25, 2023.
d. $3,973,018.15 (the “September 2023 Payment”) on or before Sept. 25, 2023.
e. $3,973,018.15 (the “October 2023 Payment”) on or before Oct. 25, 2023.
f. $3,973,018.15 less a credit for any amount as of Nov. 17, 2023 in the trustee’s bond service.
Meanwhile, UPR or the commonwealth’s Fiscal Agency and Financial Advisory Authority will provide U.S. Bank with detailed plans and specifications for repairing, replacing or reconstructing UPR property that was damaged or destroyed by Hurricane Maria as those plans are approved by UPR.
UPR will also deposit all proceeds of casualty insurance policies or direct federal aid in segregated accounts of UPR at a commercial bank. UPR will deposit proceeds of casualty insurance in a separate account and shall deposit proceeds of direct federal aid in one or more separate accounts to facilitate the audit of the expenditure of such funds.
Pursuant to the agreement, the majority bondholders expand their direction to instruct U.S. Bank not to call a default during the pendency of the extension period if by the 15th calendar day of each month UPR sends to U.S. Bank copies of the preceding month’s requisitions.
The parties also agree to use commercially reasonable efforts during the compliance period to arrive at a permanent resolution of the disputes which have given rise to the letter agreement and the various standstill extension agreements prior to Nov. 30.