From: Gonzalez, Arthur
Sent: Saturday, January 14, 2017 7:08 PM
To:[
Redactedfor Pli
j
Subject: Re: Puerto Rico (U.S. Intelligence) - Puerto Rico Says It Cannot Comply With Fiscal Plan DeKvery Date
Ok. Will get back to you.
On Jan 14, 2017, at 1:52 PM,

Redacted for PM

iwrote:

ArthurThat would be great. 1 can do Wed or Thurs morning at any time that works for you and Clayton.
my BiackBerry 10 smartphone.

From: Gonzalez, Arthur
Sent: Saturday, January 14, 2017 1:22 PM
To: Hiteshew, Kent
Cc: Gonzalez, Arthur
Subject: Re: Puerto Rico (U.S. Intelligence) - Puerto Rico Says It Cannot Comply With Fiscal Plan Delivery Date

Kent,
I had a good conversation with Clayton Gillette at NYU.
He is interested in a meeting with you. What is your schedule for next week. A meeting over coffee in am
or afternoon would be fine.
Arthur
On Jan 14, 2017, at 9:14 AM,I

______ jwrote:

Subject: Puerto Rico (U.S. Intelligence) - Puerto Rico Says It Cannot Comply With Fiscal
Plan Delivery Date
Auto forwarded by a Rule
Puerto Rico
Puerto Rico Says It Cannot Comply With Fiscal Plan .Delivery Date
The Puerto Rico government said today that it would not be able to comply with a Jan. 15
deadline to submit a fiscal plan after Gov. Ricardo Rossello and other administration
officials held an hour-long meeting with four members of the PROMESA oversight board
and their financial and legal advisors.
Elias Sanchez, the governor’s representative to the PROMESA board, said after the meeting
that the deadline remains in place according to the board’s o' np> d Dr Am ft but that the
administration, which took office Jan. 2, will not have enough time to submit the plan. The
board set the Jan. 15 deadline for the com mo 11wealth to submit a proposal and said it
planned to certify the plan by Jan. 31.
“Part of what we discussed today was why we would not be able to comply with the Jan 15
date,” Sanchez said, adding that the administration has just started to form its working
groups and compile information for the plan. “All of the work that the commonwealth
government has undertaken has been based on the fiscal plan of [Former Gov. Alejandro]

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 Garcia Padilla, which simply does not comply with any of the parameters of the PROMESA
law. What the Garcia Padilla administration presented was not a plan; it was a way to
maintain everything the way it is and eliminate the debt. That is simply not a fiscal plan.”
Sanchez said that the board still has under its consideration the request by the Rossello
administration to extend by 45 more days the date to certify a fiscal plan as well as an
extension of the PROMESA stay, which is set to expire Feb. 15 but can pushed back by the
board to May 1.
Sanchez said he expected the board to make a decision on the fiscal plan request extension
before the Jan. 31 date the board had set to approve a plan. The board will convoke another
meeting before then, and it could take up the matter then, he added.
“This was not a meeting to make decisions on our request, but obviously the governor
expressed why we need that extension for the fiscal plan,” he said.
Sanchez also reiterated that the commonwealth government would be leading debt talks
with creditors aimed at reaching a consensual deal to restructure debt, but he said the
board would be involved in the effort.
“It is the government of Puerto Rico which has the responsibility under the federal law to
undertake the good faith negotiations. That's not to say that this will occur in isolation
because the product of the negotiation has to be validated and certified by the board. If the
board does not agree with the negotiation, it would be a futile negotiation. So this will be an
effort where the government captains the effort but the board will be a part of it,” Sanchez
said, adding that the board will have representatives attending the debt talks. He said that
lie has been attending all board work sessions as the governor’s representative to the
board.
The meeting was called to better coordinate, efforts between the board, the commonwealth
government and the advisor teams that both are assembling, according to Sanchez. He said
legal counsel for the board from the Proskauer Rose law firm began coordinating efforts
with Dentons US, the law firm hired this week by the Puerto Rico Fiscal Agency and
Financial Advisory Agency. Meanwhile, McKinsey and Co., the board’s strategic advisor,
began coordinating efforts with FAFAA’s legal team.
Officials also used the meeting to establish parameters on the flow of financial information
from the commonwealth government to the board, including cash flow projections. This
integration of efforts and coordination regarding financial information is “vital” to the
creation of a fiscal plan.
Sanchez said the provision of such information would also help the board make a
determination on the commonwealth’s extension requests.
He said the level of coordination between the commonwealth and the board is distinct from
the experience of the previous administration and is resulting in an operations plan that is
good for the people of Puerto Rico.
Attending the meeting was PROMESA board chairman Jose Carrion and members Carlos
Garcia, Jose Ramon Gonzalez and Ana Matosantos.
Sanchez also said the FAFAA continues the process to hire a financial advisors and held a
round of interviews with prospective firms this week. He said the agency would announce a
decision as soon as it selects an advisor. Sources near the matter say a selection is
imminent.
J>

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