Statement By Matthew McGill, Attorney For BlueMountain Capital Management

USA - English

• Latin America - español

WASHINGTON, Feb. 6, 2015 /PRNewswire/ -- In response to today's ruling by the United States District Court for the District of Puerto Rico, which denied the Commonwealth's motion to dismiss, and declared the Recovery Act void, Matthew McGill of Gibson, Dunn & Crutcher, attorney for BlueMountain Capital said:

"We are gratified by Judge Besosa's ruling.  The Debt Avoidance Law violates federal law and a federal court now has declared it void.  We look forward to working with PREPA's stakeholders to develop a sustainable path forward."

In its ruling, the court commented specifically on the Recovery Act, stating on page 75:  "The Recovery Act is preempted by the Federal Bankruptcy Code and is therefore void pursuant to the Supremacy Clause of the United States Constitution.  The Commonwealth defendants, and their successors in office, are permanently enjoined from enforcing the Recovery Act."

SOURCE Gibson, Dunn & Crutcher