⚖ Oral Arguments, with Context

The First Circuit hears consolidated appeals from Puerto Rico's restructuring of its public electric utility, PREPA. PREPA entered a court-supervised debt adjustment under PROMESA in 2017. In 2024, this court held that the bondholders' nonrecourse claim was secured by PREPA's net revenues, meaning money remaining after operating expenses. The bondholders now say PREPA generated and used at least three-point-seven billion dollars of that collateral after the case began. They asked to treat that amount as an administrative expense, a priority claim for qualifying costs of preserving the debtor. The district court denied the request as a matter of law, without deciding whether the claimed net revenues existed. The appeals ask whether PREPA's postpetition use can support priority under Section 503, the Reading doctrine, Section 922(c), or the Constitution.

National Public Finance Guarantee Corporation v FOMB (No. 26-1330) — U.S. Court of Appeals for the First Circuit, argued September 15, 2026.