The Puerto Rico Oversight Board filed a motion for summary judgment in the Puerto Rico Electric Power Authority lien adversary proceeding Monday night.
The filing
The bondholders have pointed to section 805 of the trust agreement, which they claim, says the trustee can resort to drawing on the authority's revenue stream if the sinking fund is inadequate.
The board contends the passage the bondholders rely on refers only to money in the subordinated funds. Puerto Rico Oversight Board lawyer Martin Bienenstock said the PREPA bondholders' lien claims should largely be rejected.
Puerto Rico Attorney John Mudd expects bankruptcy Judge Laura Taylor Swain to issue a summary judgment on some issues.
Puerto Rico Clearinghouse Principal Cate Long noted the amount of revenue bonds affected, saying, "I think the court is well aware of the importance of a ruling one way or the other."
She expects Swain to "delay oral arguments on the motions for as long as possible and likely past the