PBA Plaintiff Seeks to Avoid Liens on Puerto Rico Government Real Properties
September 27, 2021, District of Puerto Rico – Under Federal Rules of Bankruptcy Procedure 7001(1), (2), and (9), the Puerto Rico Public Building Authority (“PBA”), by and through the Financial Oversight and Management Board for Puerto Rico (“FOMB”) files a complaint against Defendants AmeriNational Community Services, LLC and Cantor-Katz Collateral Monitor LLC. The FOMB alleges that the Defendants’ asserted liens or security interests concerning a pledged property are “unperfected, unenforceable and subordinate to PBA’s lien status”. The FOMB also seeks to avoid any security interest or lien granted to the Defendants by a security agreement on the pledged property and preserve it for the benefit of PBA under Section 544, 550, and 551 of the Bankruptcy Code.
The adversary proceeding arose out of a dispute between PBA and Defendants regarding the allowability in PROMESA Title III of certain alleged liens or security interests in the pledged property. The Defendants had asserted (in a proof of claim, among other places) enforceable and perfected liens or security interests in the products and proceeds of the prospective sale or disposition of two Puerto Rico government real properties: (i) the Intendente Ramirez Building and (ii) the Complex of the Department of Justice.
The case is In re The Financial Oversight and Management Board for Puerto Rico as a representative of The Commonwealth of Puerto Rico, et al, Case No. 17 BK 3283-LTS.