PEAJE INVESTMENTS LLC v. GARCÍA-PADILLA

No. 16-2377, No. 16-2430, No. 16-2431, No. 16-2433, No. 16-2435, No. 16-2437, No. 16-2438, No. 16-2439, No. 16-2440.

845 F.3d 505 (2017)

PEAJE INVESTMENTS LLC, Movant, Appellant, v. Alejandro GARCÍA-PADILLA et al., Respondents, Appellees. Peaje Investments LLC, Movant, Appellee, v. Alejandro García-Padilla et al., Respondents, Appellees, Financial Oversight and Management Board, Movant, Appellant. Assured Guaranty Corporation; Assured Guaranty Municipal Corporation, Plaintiffs, Appellees, v. Commonwealth of Puerto Rico et al., Defendants, Appellees, Financial Oversight and Management Board, Movant, Appellant. Altair Global Credit Opportunities Fund (A), LLC et al., Movants, Appellants, Claren Road Credit Master Fund, Ltd. et al., Movants, v. Alejandro García-Padilla, in his official capacity as the Governor of Puerto Rico, et al., Respondents, Appellees. Puerto Rico Fixed Income Fund V, Inc. et al., Movants, Appellees, v. Alejandro García-Padilla, in his official capacity as the Governor of Puerto Rico, et al., Respondents, Appellees, Financial Oversight and Management Board, Movant, Appellant. Brigade Leveraged Capital Structures Fund Ltd. et al., Plaintiffs, Appellees, v. Alejandro J. García-Padilla, in his official capacity as Governor of Puerto Rico, et al., Defendants, Appellees, Government Development Bank of Puerto Rico, Defendant, Financial Oversight and Management Board, Movant, Appellant. National Public Finance Guarantee Corporation, Plaintiff, Appellee, v. Alejandro J. García-Padilla et al., Defendants, Appellees, Financial Oversight and Management Board, Movant, Appellant. US Bank Trust National Association, Plaintiff, Appellee, v. Alejandro García-Padilla, in his official capacity as Governor of the Commonwealth of Puerto Rico, et al., Defendants, Appellees, Financial Oversight and Management Board, Movant, Appellant. Dionisio Trigo-Gonzalez et al., Plaintiffs, Appellees, Carmen Feliciano Vargas et al., Plaintiffs, v. Alejandro García-Padilla, in his official capacity as Governor of Puerto Rico, et al., Defendants, Appellees, Financial Oversight and Management Board, Movant, Appellant.

United States Court of Appeals, First Circuit.

January 11, 2017.


Attorney(s) appearing for the Case

G. Eric Brunstad, Jr. , Hartford, CT, with whom Allan S. Brilliant , Robert J. Jossen , Andrew C. Harmeyer , Dechert LLP, New York, NY, Dora L. Monserrate Peñagarícano , Hato Rey, PR, and Monserrate Simonet & Gierbolini, LLC were on brief, for Peaje Investments LLC.

Erin E. Murphy , with whom Susan Marie Davies , Michael F. Williams , Peter A. Farrell , Matthew D. Rowen , Kirkland & Ellis LLP, Washington, DC, and Margarita Luisa Mercado-Echegaray , Solicitor General of Puerto Rico, were on brief, for Alejandro García-Padilla, Juan C. Zaragoza-Gómez, Luis Cruz-Batista, and Carmen Villar-Prados.

Michael Luskin , with whom Stephan E. Hornung and Luskin, Stern & Eisler LLP, New York, NY, were on brief, for Financial Oversight and Management Board.

Richard A. Chesley , with whom John M. Hillebrecht , Neal F. Kronley , and DLA Piper LLP (US), New York, NY, were on brief, for The Employees Retirement System of the Commonwealth of Puerto Rico.

Sparkle L. Sooknanan , New York, NY, with whom Beth Heifetz , Geoffrey S. Stewart , Bruce Bennett , Benjamin Rosenblum , Jones Day, Washington, DC, Alfredo Fernández-Martínez , Delgado & Fernández, LLC, San Juan, PR, Arturo Díaz-Angueira , José C. Sánchez-Castro , Alicia I. Lavergne-Ramírez , Maraliz Vázquez-Marrero , Lopez Sanchez & Pirillo LLC, San Juan, PR, Glenn M. Kurtz , John K. Cunningham , Jason N. Zakia , and White & Case LLP, New York, NY, were on brief, for Altair Global Credit Opportunities Fund (A), LLC, Glendon Opportunities Fund, LP, Nokota Capital Master Fund, L.P., Oaktree-Forrest Multi-Strategy, L.L.C. (Series B), Oaktree Opportunities Fund IX, L.P., Oaktree Opportunities Fund IX (Parallel 2), L.P., Oaktree Value Opportunities Fund, L.P., SV Credit, L.P., Claren Road Credit Master Fund, Ltd., Claren Road Credit Opportunities Master Fund, Ltd., and Ocher Rose, L.L.C.

Before Howard, Chief Judge, Thompson and Kayatta, Circuit Judges.


These appeals involve the application of certain provisions of the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"), see 48 U.S.C. §§ 2101-2241, a statute enacted by Congress in June 2016 to address Puerto Rico's financial crisis. As relevant here, PROMESA provides for...

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