Business Restructuring & Insolvency 2021 Annual Review

We are representing an ad hoc group of holders of constitutional debt, i.e., debt issued or guaranteed by the Commonwealth of Puerto Rico and entitled to priority under the Commonwealth Constitution. The members of the ad hoc group at one point held in excess of $3 billion face amount of constitutional debt, making it the largest bondholder group in the Commonwealth’s pending Title III case. The Commonwealth’s Title III case is the first case to be administered under a newly enacted federal insolvency law, raising a host of complex and novel legal issues not typically present in a typical corporate restructuring. In January 2022, the Title III court confirmed the Commonwealth’s plan of adjustment, which is expected to become effective in the first quarter of 2022. Ad Hoc Group of Constitutional Debtholders – Puerto Rico 6 MORRISON & FOERSTER | BRIG 2021 ANNUAL REVIEW MORRISON & FOERSTER | BRIG 2021 ANNUAL REVIEW 7