48 U.S.C. § 2164: Petition and proceedings…

Summary

A voluntary case starts when the Oversight Board files a petition in the district court under the determination in section 2146. If someone objects, the court can dismiss the petition after notice and a hearing if it does not meet the rules of this subchapter, but not during the first 120 days after the case begins. Filing the petition also counts as an order for relief. An appeal cannot stop or delay the case, and no court may put the case on hold because of an appeal. If the court authorized borrowing under sections 364(c) or 364(d) of title 11, a later reversal of jurisdiction on appeal does not undo those debts. The Oversight Board may file petitions or plans together for affiliated debtors and may ask the court to run their cases together, but it may not force a full legal merging (substantive consolidation) of those debtors. The chapter does not allow canceling duties under federal police or regulatory laws (for example, environmental, public health, or safety laws) or territorial laws that enforce them, including duties to follow orders or consent decrees and to pay related penalties. Holders of claims may still vote on or agree to changes to their claims under subchapter VI.

Title 48, §2164

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(a)Commencement of case

A voluntary case under this subchapter is commenced by the filing with the district court of a petition by the Oversight Board pursuant to the determination under section 2146 of this title.

(b)Objection to petition

After any objection to the petition, the court, after notice and a hearing, may dismiss the petition if the petition does not meet the requirements of this subchapter; however, this subsection shall not apply in any case during the first 120 days after the date on which such case is commenced under this subchapter.

(c)Order for relief

The commencement of a case under this subchapter constitutes an order for relief.

(d)Appeal

The court may not, on account of an appeal from an order for relief, delay any proceeding under this subchapter in the case in which the appeal is being taken, nor shall any court order a stay of such proceeding pending such appeal.

(e)Validity of debt

The reversal on appeal of a finding of jurisdiction shall not affect the validity of any debt incurred that is authorized by the court under section 364(c) or 364(d) of title 11.

(f)Joint filing of petitions and plans permitted

The Oversight Board, on behalf of debtors under this subchapter, may file petitions or submit or modify plans of adjustment jointly if the debtors are affiliates; provided, however, that nothing in this subchapter shall be construed as authorizing substantive consolidation of the cases of affiliated debtors.

(g)Joint administration of affiliated cases

If the Oversight Board, on behalf of a debtor and one or more affiliates, has filed separate cases and the Oversight Board, on behalf of the debtor or one of the affiliates, files a motion to administer the cases jointly, the court may order a joint administration of the cases.

(h)Public safety

This chapter may not be construed to permit the discharge of obligations arising under Federal police or regulatory laws, including laws relating to the environment, public health or safety, or territorial laws implementing such Federal legal provisions. This includes compliance obligations, requirements under consent decrees or judicial orders, and obligations to pay associated administrative, civil, or other penalties.

(i)Voting on debt adjustment plans not stayed

Notwithstanding any provision in this subchapter to the contrary, including sections of title 11 incorporated by reference, nothing in this section shall prevent the holder of a claim from voting on or consenting to a proposed modification of such claim under subchapter VI of this chapter.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsec. (h), was in the original “This Act”, meaning Pub. L. 114–187, June 30, 2016, 130 Stat. 549, known as the Puerto Rico Oversight, Management, and Economic Stability Act and also as PROMESA, which is classified principally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 2101 of this title and Tables.

§2164 Petition and Proceedings Relating to Petition