National Public Finance Guarantee Corporation announced that it and other creditors have voluntarily dismissed without prejudice the adversary complaint filed on Aug. 7, 2017 which sought to compel the Puerto Rico Electric Power Authority to deposit revenues with the bond trustee as required by the terms of the PREPA Trust Agreement, PROMESA and the U.S. Constitution.
The voluntary dismissal of this proceeding follows National’s decision on Oct. 6, 2017 to dismiss a separate action that challenged the Commonwealth of Puerto Rico’s fiscal plan. National is an indirect subsidiary of MBIA Inc.
“While we have strong legal rights and believe that PREPA is required to remit pledged revenues to the bond Trustee, we also believe that it would be inappropriate to continue litigating the issue while PREPA is fully engaged in efforts to restore power across the island,” said Bill Fallon, CEO of National Public Finance Guarantee Corporation.
“Consequently, National has voluntarily dismissed without prejudice its adversary complaint against PREPA, the Oversight Board and other parties,” he said.
“We hope that PREPA will view this as a renewed opportunity, once circumstances permit, to re-engage with creditors to resolve the utility’s debt and position it for greater efficiency, reliability and renewed market access in the future,” Fallon added.
“As a guarantor of Puerto Rico’s debt, National succeeds when the island succeeds and our interests will remain aligned with Puerto Rico for decades to come,” he concluded.