Judge Taylor Swain issues another opinion shortchanging bondholders that will likely be overturned. She denies Prepa bondholder administrative expense claim & opines bondholders cant have an admin expense claim because they never received adequate protection #muniland.
Swain Prepa admin expense opinion 17-03283, Doc 30762 https://t.co/EFvwfKk0HN
Her real rationale appears on pg 32 (left below) when she says that paying secured bondholders is not in the public interest. Essentially she made a decision years ago that statutes related to the security interests of bondholders should be overturned using any method of statutory interpretation, case law or her personal preference.
The only question is will bondholders appeal or wait for the Supreme Court to decide the Lisa Cook case and the final exit of the OBoard members that President Trump dismissed.
Right below is from the First Circuit's opinion in 17-2079 https://t.co/WbgPNRRpWe
This will be very telling for Judge Swain. So far she has successfully performed almost impossible acrobatics to decide every matter in the interest of the FOMB. Interestingly, her long-time colleague, Arthur Gonzales, is one of the few remaining FOMB members
$mbi PREPA
By citing specific discrepancies in LUMA and Genera operational budgets, MBIA has successfully framed the "Motion to Compel" not as a fishing expedition, but as a demand for an accounting of existing money. Traders are betting that Judge Swain will find this argument
or even fundamental civil rights. I'm writing a book to tell the story, and sound the warning.
A very sad day, indeed.
My next fucus will be on protecting small investors from similar (what should be) illegal and unethical practices in the #PREPA quasi-bankruptcy.
while colluding with hedge funds who unjustly received much of that money) will not receive their money back.
Worse, in my opinion, the decision leaves a gaping wormhole in the Constitution that may further threaten US property rights, the US financial markets, (3)
The case should have been taken, but I'm sure the judges saw the bill that would be due ($50 billion or more) and choose to sweep it under the rug, again
This means many small investors who unfairly had their property taken by the actions of the United States government (2)
My eight years of work to try to uphold the United States Constitution in Dinh et al v United States of America ("COFINA") came to an end today. The US Supreme Court did not grant certiorari (my second attempt after Mark Elliott et al v FOMB et al 4 years ago). (1)
@cate_long Here is Senator Cotton's later to the FOMB re that same passage in PROMESA, expressing alarm it "could badly disrupt the municipal bond market"
https://t.co/Cq1q1wj00g
"RESPECT the relative priorities and lawful liens...", Congress chose the word "respect"instead of"uphold"specifically to allow lawful liens to be IMPAIRED, the central theme of my Amicus Curaie to the SCOTUS:
https://t.co/KIN14pCum5
PR OBoard's primary argument in opposition to Prepa bondholders admin expense claim is that they want to recalculate net revenues according to BK code 928b (which was adopted into Promesa) instead of how the trust indenture calculates net revs (ie bond collateral) #muniland.
But the statute explicitly says OBoard **shall** create fiscal plans that respect "lawful liens, as may be applicable, in the constitution, other laws, or agreements of a covered territory or covered territorial instrumentality in effect prior to the date of enactment of this Act." (201.b.1.N -- right below)
Promesa does not give the OBoard the authority to go back and change accounting or reporting standards that apply to the Prepa lien (which the 1st Circuit has twice validated). Promesa is explicit that the lien be treated as it was effectuated prior to passage of Promesa.
Admin expense claim > https://t.co/6IGXB7vrbm
Promesa (pg 16) > https://t.co/IExVG0ec0s
PR OBoard's primary argument in opposition to Prepa bondholders admin expense claim is that they want to recalculate net revenues according to BK code 928b (which was adopted into Promesa) instead of how the trust indenture calculates net revs (ie bond collateral) #muniland.
But the statute explicitly says OBoard **shall** create fiscal plans that respect "lawful liens, as may be applicable, in the constitution, other laws, or agreements of a covered territory or covered territorial instrumentality in effect prior to the date of enactment of this Act." (201.b.1.N -- right below)
Promesa does not give the OBoard the authority to go back and change accounting or reporting standards that apply to the Prepa lien (which the 1st Circuit has twice validated). Promesa is explicit that the lien be treated as it was effectuated prior to passage of Promesa.
Admin expense claim > https://t.co/6IGXB7vrbm
Promesa (pg 16) > https://t.co/IExVG0ec0s
@cate_long 1. The FOMB's defense was the focal point of my Amicus Curaie to the SCOTUS in Dinh et al v United States of America (COFINA).
Congress' use of the word "respect"instead of"uphold"allows the FOMB to NOT uphold the valid and lawful liens, laws, and Constitutional provisions.
@business I was contacted by CCP reporters to interview about my amicus curiae for Dinh v United States of America, I presume for this same purpose. I refused. Link to Amicus for those curious:
https://t.co/gvJi2ro6NB…
#promesa#cofina#prepa#muniworld
I was contacted by a CCP reporter to interview about my amicus curiae for Dinh v United States of America, I presume for this same purpose. I refused. Link to Amicus for those curious:
20251203175553187_25-539 Brief.pdf https://t.co/fPxf0REot7
As the world digests the implications of the US capture of Venezuela’s Maduro, China has ramped up its messaging, touting its governance model as a superior alternative to Western capitalism and representing a new path for developing countries to follow https://t.co/ay4a8lbI2J
(#PROMESA book):
"Broken Promises, Shattered Laws: How a Conspiracy of Good Intentions Cracked the Constitution and Strained the Fountains of Government, Itself"
https://t.co/SR17F2GE7K
First draft of my book on PROMESA, COFINA & PREPA is now available (working draft). Google Drive doc: https://t.co/FpR07A2far #PuertoRico#PROMESA#COFINA#PREPA
PROMESA shows why this matters: once that logic is accepted, core protections (Takings/Contracts/Due Process) become optional in the territories—and potentially exportable to the mainland. #TakingsClause#PROMESA#ConLaw
SCOTUS is being asked in Dinh v. United States: can Congress dodge constitutional liability by “authorizing” a rights-impairing scheme without formally compelling it? @SCOTUSblog@IJ@pacificlegal#SCOTUS#ConLaw