Debt Restructuring

On May 21, 2017, the Financial Oversight and Management Board for Puerto Rico (“FOMB”), at the request of then-Governor Rosselló Nevares, commenced a Title III case for the Puerto Rico Highways and Transportation Authority (“HTA”) by filing a petition for relief pursuant to Section 304(a) of PROMESA, 48 U.S.C. § 2164(a), in the United States District Court for the District of Puerto Rico. As such, HTA is currently a debtor in a proceeding under the Title III of PROMESA, 48 U.S.C. § 2161, et seq. Pursuant to Section 315(b) of PROMESA, 48 U.S.C. § 2175(b), the FOMB serves as HTA’s representative in its Title III. HTA’s Title III proceeding is being jointly administered with the Commonwealth’s Title III proceeding for procedural purposes only in the United States District Court for the District of Puerto Rico under Case No. 17-BK-03283-LTS.  The Title III case docket can be accessed for free by clicking here.

On October 12, 2022, the Court entered an Order confirming the Third Amended Title III Plan of Adjustment of the Puerto Rico Highways and Transportation Authority (the “Plan”).  The Plan went effective on December 6, 2022.  The Plan significantly reduces HTA’s debt burden. Specifically, the Plan reduces HTA’s funded debt by 75%, from approximately $6.4 billion to $1.245 billion senior and $359 million subordinate HTA toll road-supported debt.  The Plan creates a solid financial foundation to ensure Puerto Rico’s roads and public transportation system are maintained and improved.  For additional information regarding the Plan and the HTA restructuring process, visit the Court docket available here.