The June 13, 2024, edition of The Bond Buyer quoted Feldesman Senior Counsel Phillip A. Escoriaza on the U.S. Court of Appeals for the First Circuit’s unanimous decision handing bondholders of the Puerto Rico Electric Power Authority (PREPA) an important victory in their ongoing battle to come out of PREPA’s bankruptcy with as much money as possible. The First Circuit’s decision found that PREPA bondholders’ secured credits against the utility extend to PREPA’s net revenues and includes the bonds’ principal and interest, estimated at the lion’s share of a public debt that currently stands at $8.5 Billion.

Asked to comment, Mr. Escoriaza emphasized that the Court of Appeals’ decision increased bondholders’ bargaining power in negotiations to resolve the utility’s bankruptcy or in any other process to adjust PREPA’s debts. However, he also warned the court’s ruling could be appealed to the entire bench of Circuit Judges and could also be reviewed through discretionary certiorari in the Supreme Court.

We appreciate the opportunity for Mr. Escoriaza to weigh in on these important developments in the Title III bankruptcy of Puerto Rico public corporations under the federal PROMESA law. The Bond Buyer is a national trade publication covering the municipal bond industry. Please click here to read the entire article.