Justice415

[Justice415 @michio415]

$mbi PREPA
The Puerto Rican People’s Power Restoration Act of 2026 (H.R. 7833) is active legislation in the U.S. House of Representatives designed to dissolve the Financial Oversight and Management Board (FOMB).

[Justice415 @michio415]

$mbi PREPA
The Political Pressure , pressure is building on Capitol Hill. Legislative efforts—such as the recently introduced Puerto Rican People’s Power Restoration Act of 2026—are actively attempting to leverage the PREPA stalemate as a reason to dismantle FOMB entirely.

[Justice415 @michio415]

$mbi PREPA
The Argument: They will claim that the executive branch faces immediate, irreparable harm because the court is unconstitutionally paralyzing the President's statutory authority to manage a territorial oversight board during a multi-billion dollar municipal bankruptcy.

[Justice415 @michio415]

$mbi PREPA
The Move: The DOJ can file an emergency petition for a writ of mandamus or an expedited interlocutory appeal with the U.S. Court of Appeals for the D.C. Circuit.

[Justice415 @michio415]

$mbi PREPA
Appeal the Extension to the D.C. Circuit
While standard text-only extensions under Rule 65(b) are usually considered non-appealable procedural orders, the administration can argue that this second 14-day block effectively operates as a de facto Preliminary Injunction

[Justice415 @michio415]

$mbi PREPA
Why Judge Moss Extended the TRO
Under federal rules, a judge can extend a TRO once for an additional 14 days for "good cause.
deadline for the nominee freeze to Monday, June 1, 2026.

[Justice415 @michio415]

$mbi PREPA
https://t.co/9QLh1vZqAu

[War Correspondent @warDaniel47]

🚨 BREAKING: The Senate is considering IMPEACHMENT of Rogue Judge James Boasberg this week.

Boasberg has REFUSED to testify.

The Judiciary Committee will hold a "hearing" on "holding rogue judges accountable."

This traitor must be kicked out of office ASAP!

[Justice415 @michio415]

$mbi PREPA
a review of the docket for FOMB v. United States confirms that Judge Randolph Moss has officially entered a brief, text-only order extending the 14-day Temporary Restraining Order (TRO) for an additional 14 days.

[Justice415 @michio415]

$mbi PREPA
https://t.co/q6Tec7mlM6

[Cate Long @cate_long]

Btw Luma/Quanta $PWR has multiple cases at the First Circuit related to failures of their Prepa performance. I've said for years that $PWR has no ability to run an electric utility and I've been proved right. The whole process has been an expensive disaster #muniland

[Justice415 @michio415]

$mbi PREPA
https://t.co/QQwzVj8dWD

[Cate Long @cate_long]

The Puerto Rico grid operator Luma/Quanta $PWR contract will likely be terminated in the PR courts soon (after the Title 3 court denied remand to federal jurisdiction) #muniland.

This is a very helpful essay on what the path forward could be if the electric utility was reconstituted as a public utility (remunicipalization). The PR OBoard insists that local law requiring a private operator must be followed (of course the law could be changed by the legislature).

The entire issue requires debate and bondholders should be at the table when that happens. We're 10 years into the bankruptcy and the OBoard insists on battling every party (except Luma) and that must cease. It's way past time to get all the parties working in unison to harden & improve Prepa.

[Justice415 @michio415]

$mbi PREPA
As of right now, mid-day on Monday, May 18, 2026, a final, signed order regarding the TRO/Preliminary Injunction has not yet hit the electronic docket. Both the FOMB’s legal counsel and the Department of Justice are in a holding pattern.

[Justice415 @michio415]

$mbi PREPA
The fact that the 14-day TRO deadline lands today means the FOMB's internal legal strategy is being decided under extreme duress.

[Justice415 @michio415]

$mbi PREPA
The Injunction Ruling: Judge Moss must issue his ruling on the Preliminary Injunction before the 14 days run out. If he grants it, the Trump nominees remain locked out of the FOMB indefinitely; if he denies it, they take their seats immediately

[Justice415 @michio415]

$mbi PREPA
https://t.co/tVTaLn3Iyr

[Cate Long @cate_long]

The Prepa bond trustee, @usbank, summarizes in the simplest terms why the Title 3 court erred in denying the bondholders administrative expense claim #muniland. See below:

https://t.co/VcEBiMCNNy

[Justice415 @michio415]

$mbi PREPA
May 18 hearing
1 [phone]
Standard Access Code: 2314 687 7241

[Justice415 @michio415]

$mbi PREPA
This operational mess proves National's core legal argument: the FOMB is incapable of safely managing PREPA's restructuring alone. It significantly strengthens MBIA’s pending demand to have Judge Swain appoint an independent, court-supervised Receiver

[Justice415 @michio415]

$mbi PREPA
The FOMB's broader credibility is being hammered by local infrastructure chaos. Just last week (May 8), the U.S. District Court remanded the Puerto Rico government’s hostile lawsuit against private grid operator LUMA Energy back to the local courts.

[Justice415 @michio415]

$mbi PREPA
https://t.co/fcVx8p3kBB

[Cate Long @cate_long]

Yesterday was the deadline for Prepa bondholders to file their appeal briefs on the administrative expense claim #muniland. In this litigation bondholders contend that Prepa has generated net revenues, which Prepa's financial documents show, & bhs are entitled to debt service payments.

In the case below the T3 court allowed discovery to proceed & then abuptly issued an order asserting that the bankruptcy code doesnt allow bhs to even try to claim an administrative expense.

Essentially the T3 court believes that the debtor (Prepa) can endlessly consume bondholder collateral (net revenues) over a decade and bondholders have no remedy. The T3 court's opinion defies common sense because it means secured creditors have zero recourse even if a the trust agreement provides them remedies.

The Assured/National brief is a legal tour de force likely authored by @gibsondunn partner Miguel Estrada who has argued at SCOTUS dozens of times. https://t.co/peN8cLg4h8

[Justice415 @michio415]

$mbi PREPA
FOMB has hidden behind calculated "affordability models" to justify wiping out bondholders. The raw ledgers threaten to expose actual net revenues that do not match the board's public narrative. , MBIA will gain total visibility into PREPA's cash balances

[Justice415 @michio415]

$mbi PREPA
National believes these documents contain concrete proof that the FOMB has been obfuscating PREPA's actual cash generation to justify a lower recovery rate for bondholders. The FOMB has spent years arguing "affordability metrics," but raw ledgers do not lie.