With approximately $74 billion of debt and insufficient resources to satisfy it, there have been many lawsuits filed against the Commonwealth of Puerto Rico (and in some instances, the Oversight Board) before the filing of the Title III case.
1. On Jan. 7, 2016, certain insurers of bonds issued by the public corporations of the Commonwealth of Puerto Rico (the "Commonwealth") filed a complaint against the Commonwealth's Governor, Secretary of Treasury, Sub-secretary of Treasury, Secretary of Justice, and Director of Office of Management and Budget (the "OMB Director"), the Puerto Rico Tourism Company's Executive Director (the "Tourism Director"), the President of the Government Development Bank for Puerto Rico (the "GDB"), and certain John Does seeking declaratory judgment that certain executive orders issued by the Governor violate the Takings Clause and Contracts Clause of the U.S. Constitution. See Assured Guaranty Corp., et al. v. Garcia-Padilla, et al., No. 16-01037-FAB (D.P.R. Jan. 7, 2016).
2. On Jan. 19, 2016, an insurer of debt issued by the Commonwealth and its public corporations filed a complaint against the Commonwealth's Governor, Secretary of Treasury, Sub-secretary of Treasury, Secretary of State, Secretary of Justice, and OMB Director, the Tourism Director, the GDB's President, and certain John Does seeking declaratory judgment that section 8 of the Puerto Rico Constitution, the Management and Budget Office Organic Act, and executive orders relating to the foregoing (a) are preempted by the Bankruptcy Code, (b) improperly operate in a field occupied by Congress, (c) conflict with the Bankruptcy Code, and (d) with respect to the executive orders, violate the Contracts Clause and Takings Clause of the U.S. Constitution. See Financial Guaranty Insurance Company v. Garcia-Padilla, et al., No. 16-01095-FAB (D.P.R. Jan. 19, 2016).
Debtor: The Commonwealth of Puerto Rico
c/o Financial Oversight and Management Board for
Puerto Rico, as Representative of the Debtor
Jacob Javits Federal Bldg.
26 Federal Plaza
Room 2-128, Attn: Jaime El Koury
New York, NY 10278
Case No.: 17-01578
About the Debtor: Covered Territory as defined in the Puerto Rico
Oversight, Management, and Economic Stability
Act Section 5(7). Puerto Rico is a self-
governing commonwealth in association with the
Vitargo Global Sciences, Inc. seeks approval from the US Bankruptcy Court for the Central District of California, Santa Ana Division, to employ Jeffrey Bolender, Esq. and Bolender Law Firm PC as state court insurance coverage counsel.
FB Coventry, LLC seeks approval from the U.S. Bankruptcy Court for the District of Rhode Island to hire legal counsel in connection with its Chapter 11 case.
The Official Committee of Unsecured Creditors of Bostwick Laboratories, Inc., et al seeks approval from the US Bankruptcy Court for the District of Delaware to retain Pachulski Stang Ziehl & Jones LLP as co-counsel to the Committee.
Judy A. Robbins, the United States Trustee, notified the U.S. Bankruptcy Court for the Western District of Texas of the appointment of Thomas A. Mackey, PhD, APRN-BC, FAAN FAANP, as the Patient Care Ombudsman for Alpha Nursing & Therapy, LLC.