The Fiscal Control Board (FCB) submitted a petition today for Title III of the federal Promesa Act, which provides protection from bankruptcy for the Government of Puerto Rico and other instrumentalities.

The chairman of the Board , José Carrión III, explained in a press release that it was determined to be necessary and appropriate that the Government of Puerto Rico filed said voluntary petition under the Title III to protect the residents of the island, while at the same time the interests of their creditors , in light of the expirationof the moratorium against litigations written in the federal law on midnight on Monday .

At the same time he clarified that , ‘ the Fiscal Control Board continues believing that the consensual negotiations , as they are now , are preferible and will be continued with all groups of creditors that are willing . This filing does not represent the end of discussions ,’ Carrión III stated .

Likewise, he recognized that the liquidityand solvency problemsof the Government ‘are enormous and Title III is now necessary to protect the peopleof Puerto Rico andavoid a negativeimpact on the economyeven more dire as a resultof an avalanche oflitigations and continued uncertainty.’

In an interview with journalists in a forum on thefiscal crisis of Puerto Rico at theconservative institutionAmerican Enterprise Institute in Washington, Carrión III explained that he was’saddened’ to have to report that at11:32 am, Puerto Rico turned into adebtor under Title III.

‘We understand thatwhat the Governor asked for is theright thing and we validate his request and have reached this conclusion in light of how negotiations have gone up until today,’ theChairman of theFCB confirmed little later after the legal resource in San Juan had been filed.

‘Multiple approachesand offers have been made and unfortunately we have not been able to reach an agreement, and to protect thepeople of Puerto Rico, we believe in thegovernorsplea and we validate it,’ he added.

Carrión III explained that not all of the debt will be adjudicated through the Title III and that conversations continue with some of the bondholders that havenotfiledlawsuits against the Government and with others who have already gone to Court .

‘We seek to reach consensual agreements inside theTitle III framework andwill continue trying to do so,’ he reaffirmed.

Read the documents below and stay conected to NotiCel.com forthe development of this story.

Title III Instrumentalities _24747

Petition Title III _24748

Fiscal Plan _24749

Motion for Title III_24750

Pending Litigations _24751