IN RE FIN. OVERSIGHT & MGMT. BOARD FOR PUERTO RICO

No. 19-1391.

989 F.3d 123 (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. Cooperativa De Ahorro Y Credito Dr. Manuel Zeno Gandia; Cooperativa De Ahorro Y Credito De Juana Diaz; Cooperativa De Ahorro Y Credito De Rincon, Creditors, 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; Aristeia Master L.P.; ASIG International Limited; Canyon Balanced Master Fund, Ltd.; Canyon Blue Credit Investment Fund, L.P.; Canyon Distressed Opportunity Investing Fund II, L.P.; Canyon Distressed Opportunity Master Fund II, L.P.; Canyon NZ-DOF Investing, L.P.; Canyon Value Realization Fund, L.P.; Canyon Value Realization Mac 18 Ltd.; Canyon-ASP Fund, L.P.; Canyon-GRF Master Fund II, L.P.; Canyon-SL Value Fund, L.P.; Centurylink Inc. Defined Benefit Master Trust; Compass Esma LP; Compass TSMA LP; Corbin Erisa Opportunity Fund, Ltd.; Corbin Opportunity Fund, L.P.; Credit Fund Golden Ltd.; Decagon Holdings 1, LLC; Decagon Holdings 2, LLC; Decagon Holdings 3, LLC; Decagon Holdings 4, LLC; Decagon Holdings 5, LLC; Decagon Holdings 6, LLC; Decagon Holdings 7, LLC; Decagon Holdings 8, LLC; Decagon Holdings 9, LLC; Decagon Holdings 10, LLC; Ep Canyon Ltd., f/k/a Permal Canyon 10 Ltd.; GN3 Sip Limited; Goldentree Entrust Master SPC, on behalf of and for the account of Segregated Portfolio I; Goldentree NJ Distressed Fund 2015 LP; Gold Coast Capital Subsidiary X Limited; Goldentree 2017k-SC, Ltd.; Goldentree Distressed Fund 2014 LP; Goldentree Distressed Master Fund 2014 Ltd.; Goldentree E Distressed Debt Fund II LP; Goldentree E Distressed Master Fund II LP; Goldentree High Yield Value Fund Offshore (Strategic), Ltd.; Goldentree High Yield Value Master Unit Trust; Goldentree Insurance Fund Series Interests of The Sali Multi-Series Fund, LP; Goldentree Master Fund, Ltd.; Goldentree Multi-Sector Fund Offshore Erisa, Ltd.; Goldentree Multi-Sector Master Fund ICAV — Goldentree Multi-Sector Master Fund Portfolio A; Goldentree Structured Products — C LP; Goldentree Structured Products Opportunities Fund Extension Holdings, LLC; GT NM, LP; Guadalupe Fund, LP; High Yield and Bank Loan Series Trust; Louisiana State Employees' Retirement System; Ma Multi-Sector Opportunistic Fund, LP; Pandora Select Partners, L.P.; Rock Bluff High Yield Partnership, LP; San Bernardino County Employees Retirement Association; SB Special Situation Master Fund SPC-Portfolio D; Scoggin International Fund, Ltd.; Scoggin Worldwide Fund Ltd.; Taconic Master Fund 1.5 LP; Taconic Opportunity Master Fund LP; Canyon Value Realization Master Fund, L.P.; Parochial Employees' Retirement Fund of Louisiana; Tilden Park Investment Master Fund LP; Whitebox Asymmetric Partners, L.P.; Whitebox Caja Blanca Fund, LP; Whitebox Institutional Partners, L.P.; Whitebox Multi-Strategy Partners, L.P.; Whitebox Term Credit Fund I L.P.; Windermere Ireland Funds PLC; Official Committee of Unsecured Creditors; Aristeia Capital, LLC; Canyon Capital Advisors, LLC; Goldentree Assent Management LP; Taconic Capital Advisors, L.P.; Tilden Park Capital Management LP; Whitebox Advisors LLC, Movants, Appellees, Eduardo Bhatia-Gautier; Jose L. Dalmau-Santiago; Rossana Lopez-Leon; Miguel A. Nadal-Power; Cirilo Tirado-Rivera; Anibal Jose Torres-Torres; Peter C. Hein; Stephen T. Mangiaracina; Service Employees International Union; United Automobile, Aerospace & Agricultural Implement Workers of America International Union; Peter C. Hein; GMS Group LLC; Lawrence B. Dvores; Mark Elliott; Cooperativa de Ahorro y Credito del Valenciano; Capitulo Autoridad de Carreteras; Capitulo Instituto de Cultura Puertorriquena; Capitulo de Oficina Desarrollo Socioeconomico y Comunitario; Capitulo Oficina del Procurador del Veterano; Capitulo de Jubilados; Movimiento de Concertacion Ciudadana Inc.; Rene Pinto-Lugo; Union de Empleados De Oficina y Profesionales de la Autoridad de Edificios Publicos; Union Insular de Trabajadores Industriales y Construcciones Electricas Inc.; Union Independiente de Empleados de la Autoridad De Acueductos y Alcantarillados; Union De Empleados De Oficina Comercio y Ramas Anexas, Puertos; Union De Empleados Profesionales Independientes; Union Nacional de Educadores y Trabajadores de la Educacion; Asociacion De Innspectores De Juegos De Azar; Manuel Natal-Albelo, Movants.

United States Court of Appeals, First Circuit.

March 2, 2021.


Attorney(s) appearing for the Case

Guillermo J. Ramos-Luiña for appellants.

Martin J. Bienenstock , with whom Stephen L. Ratner , Jeffrey W. Levitan , Brian S. Rosen , Mark. D. Harris , New York, NY, Timothy W. Mungovan , Boston, MA, John E. Roberts , Whitehall, PA, Adam L. Deming , Michael A. Firestein , Los Angeles, CA, Lary A. Rappaport , Proskauer Rose LLP, Los Angeles, CA, were on brief, for debtors-appellees.

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

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

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


We consider another appeal arising out of the Title III debt-restructuring proceedings commenced 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, and Economic Stability Act (PROMESA...

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