The Fiscal Control Board (FCB) assured the court and the creditors that their decisions about the island's finances are not revisable in court. This at the end of a week where lobbying efforts were redoubled in Congress to force Puerto Rico to pay its creditors more than it has said it can, creditor committees were appointed, a group of mediating judges was established, and the government's new financial data was published.

The FCB's statement was part of a report filed on Thursday before Judge Laura Taylor Swain, who presides Puerto Rico's bankruptcy case. This report updates the judge on the proceedings to disclose information to creditors and the negotiations conducted by the FCB.

The data provided to creditor lawyers, advisers, and representatives includes information that has already been publicized, but it also features data and answers to creditor questions that are not available to the general public. This information is posted to a virtual 'Dataroom' that can only be accessed by those who have signed a confidentiality agreement that forbids them from disclosing such information. However, it does not prohibit them from using the information to initiate legal actions, as has already happened.

The Board also used the report (which has been linked at the end of this story) to argue about the attempts made by some creditors to challenge the validity of the certified Fiscal Plan and the budget that's being considered for authorization. The Fiscal Plan provides for a payment of only 25% of the debt.

'In a nutshell, the problem is not the disclosure of data. Rather, creditors do not like the disclosed data and the debt sustainability it supports. Accordingly, rather than negotiate to divide up the money available for debt service under the fiscal plan, the creditors have been very clear that they want the Oversight Board to certify a different fiscal plan showing more debt can be sustained... And, while the Oversight Board wishes it could satisfy creditors' desires for higher repayments, the Oversight Board is resolute that it will only certify fiscal plans it believes are feasible and will create fiscal responsibility and capital market access, as PROMESA requires,' the FCB stated to Judge Swain.

They added that the federal act's public policy is for the Board members to make decisions free from pressure on behalf of the government and creditors, so as to obtain more revenues for services and more funds to repay the debt. 'The Oversight Board's certifications are not even subject to being second-guessed by the Court,' they emphasized.

The document also acknowledged the creditors' rights to go to court to discuss payment priorities or to file for protection orders, if they believe the collateral for the debt they are owed is under threat. However, they do not grant them the right to interfere in the Board's processes to issue certifications.

In other matters, the Board also disclosed that almost 50% of the Government Development Bank's creditors agree with the restructuring offer made by the government.

The next bankruptcy case hearing before Judge Swain will be held on June 28.

Board's Statement for Judge Swain _25591