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On Tuesday, the presiding judge in the Title III bankruptcy case concerning the Puerto Rico Electric Power Authority (PREPA) announced an extension of the litigation stay until January 31, 2025.
U.S. District Judge Laura Taylor Swain also deferred the renewed motion from GoldenTree Asset Management LP and Syncora Guarantee Inc. to February 5, where they are requesting relief from the automatic stay to facilitate the appointment of a receiver for PREPA. The monoline insurers are pushing for payment of their portion of the $9 billion debt that the public utility has accumulated while in bankruptcy since 2017.
The judge made her ruling following a request from the mediation team for additional time to work towards a consensual agreement regarding PREPA’s debt among the various stakeholders. Consequently, any resolution of the bankruptcy proceedings is now postponed until the upcoming year.
“The Court having determined the Mediation Team gave adequate and suitable notice of the Notice and Report under the prevailing circumstances, and that no further notice is necessary; and the Court having ascertained that good and sufficient cause exists for the relief outlined herein; it is hereby ordered that: the litigation stay established by the Stay Order is hereby extended through and including January 31, 2025, unless otherwise directed by the Court,” stated the judge.
During the stay period, Swain instructed all involved parties to engage with the mediation team as per their directives, which includes the involvement of key individuals.
She also requested the mediation team to submit a report on the status of the mediation talks and whether any changes to the stay order are advisable before the stay period ends.
This stay had been previously extended to November 13 at the mediation team’s request, which is managing discussions between PREPA bondholders and the Financial Oversight and Management Board.
