Case:17-03283-LTS Doc#:1562 Filed:10/29/17 Entered:10/29/17 18:13:11 Document Page 1 of 3 Desc: Main UNITED STATES DISTRICT COURT FOR THE DISTRICT OF PUERTO RICO PROMESA Title III In re: THE FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO RICO, as representative of No. 17 BK 3283-LTS (Jointly Administered) THE COMMONWEALTH OF PUERTO RICO, et al., Debtors. 1 URGENT INFORMATIVE MOTION REGARDING STATEMENT MADE AT OCTOBER 25, 2017 HEARING To the Honorable United States District Judge Laura Taylor Swain: The Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”) through its undersigned counsel, respectfully submits a letter notifying the Court of an update to a statement made by counsel for AAFAF on behalf of the Commonwealth of Puerto Rico at the hearing before this Court on October 25, 2017 at 10:00 a.m. The letter is attached hereto as Exhibit A. WHEREFORE, AAFAF respectfully requests that the Court take notice of the foregoing. 1 The Debtors in these Title III Cases, along with each Debtor’s respective Title III case number and the last four (4) digits of each Debtor’s federal tax identification number, as applicable, are the (i) Commonwealth of Puerto Rico (Bankruptcy Case No. 17 BK 3283-LTS) (Last Four Digits of Federal Tax ID: 3481); (ii) Puerto Rico Sales Tax Financing Corporation (“COFINA”) (Bankruptcy Case No. 17 BK 3284-LTS) (Last Four Digits of Federal Tax ID: 8474); (iii) Puerto Rico Highways and Transportation Authority (“HTA”) (Bankruptcy Case No. 17 BK 3567LTS) (Last Four Digits of Federal Tax ID: 3808); and (iv) Employees Retirement System of the Government of the Commonwealth of Puerto Rico (“ERS”) (Bankruptcy Case No. 17 BK 3566-LTS) (Last Four Digits of Federal Tax ID: 9686). (Title III case numbers are listed as Bankruptcy Case numbers due to software limitations). Case:17-03283-LTS Doc#:1562 Filed:10/29/17 Entered:10/29/17 18:13:11 Document Page 2 of 3 Desc: Main Dated: October 29, 2017 San Juan, Puerto Rico Respectfully submitted, Respectfully submitted, /s/ Peter Friedman John J. Rapisardi Suzzanne Uhland Peter Friedman (Admitted Pro Hac Vice) O’MELVENY & MYERS LLP 7 Times Square New York, NY 10036 Tel: (212) 326-2000 Fax: (212) 326-2061 /s/ Andrés W. López Andrés W. López USDC No. 215311 THE LAW OFFICES OF ANDRÉS W. LÓPEZ, P.S.C. 902 Fernández Juncos Ave. San Juan, PR 00907 Tel: (787) 294-9508 Fax: (787) 294-9519 Attorneys for the Puerto Rico Fiscal Agency Co-Attorney for the Puerto Rico Fiscal Agency and Financial Advisory Authority and Financial Advisory Authority 2 Case:17-03283-LTS Doc#:1562 Filed:10/29/17 Entered:10/29/17 18:13:11 Document Page 3 of 3 Desc: Main CERTIFICATE OF SERVICE I hereby certify that, on this same date, I electronically filed the foregoing with the Clerk of the Court using the CM/ECF system, which will send notifications of such filing to all CM/ECF participants in this case. /s/ Andrés W. López Andrés W. López 3 Case:17-03283-LTS Doc#:1562-1 Filed:10/29/17 Entered:10/29/17 18:13:11 Exhibit A Page 1 of 2 EXHIBIT A Desc: Case:17-03283-LTS Doc#:1562-1 Filed:10/29/17 Entered:10/29/17 18:13:11 Exhibit A Page 2 of 2 O’Melveny & Myers LLP 1625 Eye Street, NW Washington, DC 20006-4061 Desc: T: +1 202 383 5300 F: +1 202 383 5414 omm.com October 29, 2017 Peter Friedman D: +1 202 383 5302 pfriedman@omm.com Dear Judge Swain: I write with respect to my remarks in connection with the hearing on the Urgent Joint Motion of the Commonwealth of Puerto Rico, Puerto Rico Highways and Transportation Authority, Puerto Rico Electric Power Authority 1, and the Puerto Rico Fiscal Agency and Financial Advisory Authority 2 for Order Concerning Receipt and Use of Anticipated Federal Disaster Relief Funds and Preserving Rights of Parties, (the “Hearing”) held on October 25, 2017. In response to creditor comments about a contract between PREPA and Whitefish Energy Holdings, LLC (the “Contract”), I said that “[t]he government believes that contract was conducted in a compliant manner with FEMA 3 regulations. Of course, information about that process and the contract will be shared with the oversight board. That is something the oversight board requests. In addition, something called a GAR, or governor's audit review, will be conducted with respect to that contract.” (Hrg. Transcript at 32:18–24). I believed the statement regarding FEMA compliance to be true when I made it based on an understanding regarding a provision in the Contract supporting that statement. Subsequent to the hearing, certain developments have come to light, including a press release by FEMA indicating that the Contract was not, and has not yet, been approved by FEMA and an October 29, 2017 press conference where Governor Ricardo Rosselló announced that he has requested that the Contract be canceled. In light of these developments, the Commonwealth Government and AAFAF can no longer represent that they believe the Contract is compliant with FEMA regulations. I am available at the Court’s convenience to answer any questions you may have. Respectfully submitted, /s/ Peter Friedman Peter Friedman 1 “PREPA”. “AAFAF”. 3 FEMA is an abbreviation of the Federal Emergency Management Administration. 2 Century City • Los Angeles • Newport Beach • New York • San Francisco • Silicon Valley • Washington, DC Beijing • Brussels • Hong Kong • London • Seoul • Shanghai • Singapore • Tokyo