IN RE FINANCIAL OVERSIGHT AND MANAGEMENT BOARD

Nos. 19-1181, 19-1182, 19-1960.

987 F.3d 173 (2021)

IN RE: The FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO RICO, as Representative for the Commonwealth of Puerto Rico; The Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Highways and Transportation Authority; The Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Electric Power Authority (PREPA); The Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Sales Tax Financing Corporation, a/k/a COFINA; The Financial Oversight and Management Board for Puerto Rico, as Representative for the Employees Retirement System of the Government of the Commonwealth of Puerto Rico, Debtors. René Pinto-Lugo; Movimiento de Concertación Ciudadana Inc., (VAMOS); Unión de Empleados de Oficina y Profesionales de la Autoridad de Edificios Públicos, (UEOGAEP); Unión Insular de Trabajadores Industriales y Construcciones Electricas Inc., (UITICE); Unión Independiente de Empleados de la Autoridad de Acueductos y Alcantarillados, (UIA); Unión de Empleados de Oficina Comercio y Ramas Anexas, Puertos, (UEOCRA); Unión de Empleados Profesionales Independientes, (UEPI); Unión Nacional de Educadores y Trabajadores de la Educación, (UNETE); Asociación de Inspectores de Juegos de Azar, (AIJA); Manuel Natal Albelo, Movants, Appellants, v. The Financial Oversight and Management Board for Puerto Rico, as Representative for the Commonwealth of Puerto Rico; The Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Sales Tax Financing Corporation, a/k/a COFINA, Debtors, Appellees, Puerto Rico Fiscal Agency and Financial Advisory Authority, Movant, Appellee, Aristeia Capital, LLC; Canyon Capital Advisors, LLC; Golden Tree Asset Management LP; Old Bellows Partners LLP; Scoggin Management LP; Taconic Capital Advisors, L.P.; Tilden Park Capital Management LP; Whitebox Advisors LLC, Intervenors. In re: The Financial Oversight and Management Board for Puerto Rico, as Representative for the Commonwealth of Puerto Rico; The Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Highways and Transportation Authority; The Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Electric Power Authority (PREPA); The Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Sales Tax Financing Corporation, a/k/a COFINA; The Financial Oversight and Management Board for Puerto Rico, as Representative for the Employees Retirement System of the Government of the Commonwealth of Puerto Rico, Debtors. Mark Elliott; Lawrence B. Dvores; Peter C. Hein, Movants, Appellants, v. The Financial Oversight and Management Board for Puerto Rico, as Representative for the Commonwealth of Puerto Rico; The Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Sales Tax Financing Corporation, a/k/a COFINA, Debtors, Appellees, Puerto Rico Fiscal Agency and Financial Advisory Authority, Movant, Appellee, Aristeia Capital, LLC; Canyon Capital Advisors, LLC; Golden Tree Asset Management LP; Old Bellows Partners LLP; Scoggin Management LP; Taconic Capital Advisors, L.P.; Tilden Park Capital Management LP; Whitebox Advisors LLC, Intervenors. In re: The Financial Oversight and Management Board for Puerto Rico, as Representative for the Commonwealth of Puerto Rico; The Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Highways and Transportation Authority; The Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Electric Power Authority (PREPA); The Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Sales Tax Financing Corporation, a/k/a COFINA; The Financial Oversight and Management Board for Puerto Rico, as Representative for the Employees Retirement System of the Government of the Commonwealth of Puerto Rico, Debtors. Peter C. Hein, Movant, Appellant, v. The Financial Oversight and Management Board for Puerto Rico, as Representative for the Commonwealth of Puerto Rico; The Financial Oversight and Management Board for Puerto Rico, as Representative for the Puerto Rico Sales Tax Financing Corporation, a/k/a COFINA, Debtors, Appellees, Puerto Rico Fiscal Agency and Financial Advisory Authority, Movant, Appellee.

United States Court of Appeals, First Circuit.

February 8, 2021.


Attorney(s) appearing for the Case

Roberto O. Maldonado-Nieves for appellants Pinto Lugo, et. al.

Rafael A. González Valiente , Guaynabo, Puerto Rico, for appellant Elliot.

Lawrence B. Dvores on brief for appellant Dvores.

Peter C. Hein , New York, NY, for appellant Hein.

Martin J. Bienenstock , New York, NY, and Hermann D. Bauer-Alvarez , San Juan, PR, with whom Timothy W. Mungovan , John E. Roberts , Boston, MA, Stephen L. Ratner , Brian S. Rosen , Mark D. Harris , Jeffrey W. Levitan , Lucas Kowalczyk , New York, NY, Shiloh A. Rainwater , Michael A. Firestein , Lary Alan Rappaport , Los Angeles, CA, and Proskauer Rose LLP, were on brief for appellee Financial Oversight and Management Board for Puerto Rico as representative for the Commonwealth of Puerto Rico and the Puerto Rico Sales Tax Financing Corporation.

Peter M. Friedman , Washington, DC, with whom John J. Rapisardi , New York, NY, Suzanne Uhland , and O'Melveny & Myers LLP, were on brief for appellee Puerto Rico Fiscal Agency and Financial Advisory Authority.

David M. Cooper , with whom Susheel Kirpalani , New York, NY, Quinn Emanuel Urquhart & Sullivan, LLP, Rafael Escalera , San Juan, PR, Sylvia M. Arizmendi , Carlos R. Rivera-Ortiz , San Juan, PR, and Reichard & Escalera LLC, were on brief for intervenors.

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


These three consolidated appeals arise out of Title III debt-restructuring proceedings brought by the Financial Oversight and Management Board for Puerto Rico ("the Board") on behalf of the Puerto Rico Sales Tax Financing Corporation (COFINA) under the Puerto Rico Oversight, Management...

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