The Puerto Rico bankruptcy court will consider another one-week extension of the retail voting deadline on the proposed Plan of Adjustment responding to bondholder Peter Hein’s motion.
Hein filed his motion late Wednesday.
The Plan of Adjustment provides for the filing of a “Plan Supplement, which will contain documents necessary for the consummation and implementation of the transactions contemplated by the Plan … no later than seven days prior to the voting deadline,” according to the Oversight Board.
This week, bankruptcy Judge Laura Taylor Swain extended the deadline for voting on the proposed Plan of Adjustment to Oct. 18.
With the new deadline, the supplement can be filed Oct. 11, the board said.
Hein said his broker Merrill Lynch has asked its Puerto Rico bondholders to vote by 3 p.m. on Oct. 12. More time will be needed to consider the Plan Supplement, he said in asking the court to extend the voting deadline to Oct. 25.
“I agree with Hein but unless the board accepts it, doubt the judge will grant it,” said Puerto Rico attorney John Mudd.
While the solicitation packages with ballots for voting were supposed to be mailed on Aug. 30, Hein said he got the first of what should have been four packages on Sept. 23, and it was incomplete.
Hein argued others probably didn’t receive their solicitation packages in a reasonable time frame. Also, the hard copy notices in the solicitation packages, he said, are misleading and the procedures do not comply with Plan of Adjustment terms.
Swain has set the deadline to respond to Hein as 5 p.m. on Oct. 4 Atlantic Standard Time. She said Hein would have until 5 p.m. on Oct. 8 to respond to these responses.
Swain has scheduled the first day of the Plan of Adjustment hearing for Nov. 8. The board last week argued there needs to be time to count ballots before the hearing is started and that Oct. 18 gave it enough time to do so with little time to spare.