PREPA bond parties appeal lien, other rulings

Bonds

Puerto Rico Electric Power Authority bondholder GoldenTree Asset Management and bond insurer Syncora Guarantee gave notice they will appeal several PREPA bankruptcy decisions.

The appeal, announced Thursday, covers all “interlocutory orders merging into the final judgment,” issued by U.S. District Judge Laura Taylor Swain Tuesday for an adversary proceeding that the Oversight Board filed in 2019. These included rulings on revenue lien and recourse issues made in March, unsecured net revenue claim estimation in June, a joint stipulation resolving perfection-related issues from August, and an order on Tuesday dismissing five other bond party arguments. 

The bond parties are appealing to the First Circuit Court of Appeals. 

Puerto Rico Electric Power Authority bondholders will appeal key rulings by Judge Laura Taylor Swain.

Bloomberg News

Puerto Rico Attorney John Mudd said the bond parties are wise in filing the appeal now, and may ask for an expedited appeal.

The Puerto Rico Oversight Board, Fiscal Agency and Financial Advisory Authority, Unsecured Creditors Committee, and National Public Finance Guarantee didn’t immediately respond to a request for comment.

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