Dear Unsecured Creditor:
We wanted to follow up on our September 27, 2019 email with respect to the release of the Financial Oversight and Management Board for Puerto Rico’s proposed plan of adjustment for the Commonwealth of Puerto Rico (the “Proposed Plan”), by sharing with you the article published yesterday (Sunday) on the front page of El Nuevo Día’s business magazine, “Blow to Government Contractors and Suppliers,” available here.
The El Nuevo Día article discusses, among other things, the Proposed Plan’s treatment of general unsecured creditors (not including holders of employee and pension claims) who would only receive an estimated distribution of up to 1.8% (according to the Oversight Board), the discrepancy between the treatment of general unsecured creditors and bondholders (who will receive far more favorable recoveries), and the economic impact of failing to pay the Puerto Rico government’s suppliers of goods and services. We encourage you to read the article and share with others.
The Committee intends to vigorously oppose the proposed treatment of general unsecured creditors under the Proposed Plan. The Committee will provide updates on its website regarding the Proposed Plan and the confirmation process. Please stay tuned.*
The Official Committee of Unsecured Creditors
*NOTHING CONTAINED HEREIN CONSTITUTES THE SOLICITATION OF VOTES FOR THE ACCEPTANCE OR REJECTION OF A TITLE III PLAN OF ADJUSTMENT WITHIN THE MEANING OF SECTION 1125 OF THE BANKRUPTCY CODE, AS APPLICABLE TO TITLE III OF PROMESA. NO SUCH SOLICITATION SHALL OCCUR PRIOR TO APPROVAL BY THE COURT, IN ACCORDANCE WITH PROMESA, OF A DISCLOSURE STATEMENT WITH RESPECT TO SUCH TITLE III PLAN OF ADJUSTMENT.
INFORMATION PROVIDED TO YOU IN THIS EMAIL AND INFORMATION ON THE COMMITTEE'S WEBSITE IS FOR GENERAL INFORMATIONAL PURPOSES ONLY AND NOT FOR THE PURPOSE OF PROVIDING LEGAL ADVICE OF ANY NATURE, INCLUDING AS TO THE AMOUNT, NATURE, OR SECURED OR PRIORITY STATUS OF ANY CLAIM. YOU SHOULD CONSULT YOUR ATTORNEY TO OBTAIN LEGAL ADVICE WITH RESPECT TO ANY PARTICULAR ISSUE. RECEIPT OF THIS EMAIL OR USE OF THE COMMITTEE'S WEBSITE DOES NOT CREATE AN ATTORNEY-CLIENT RELATIONSHIP WITH ANY ADVISOR TO THE CREDITORS' COMMITTEE.