In the article, “PROMESA and McKinsey’s Lack of Disinterestedness,” N.Y.L.J. (Jan. 4, 2019), Carlos J. Cuevas incorrectly charges McKinsey with having a conflict of interest that should disqualify it from continuing to act as adviser to the Financial Oversight and Management Board (FOMB) for Puerto Rico. McKinsey asked me to look into the matter and, if I thought it appropriate, write a response. I most certainly think it appropriate to do so because in my opinion Mr. Cuevas got it completely wrong.

Mr. Cuevas’s conclusion that McKinsey is unfit to serve as FOMB’s adviser is based on his assertion that, “[a]fter McKinsey was retained, it was revealed that McKinsey, through its affiliates, holds at least $20 million of Puerto Rico’s debt.” Thus, Mr. Cuevas says that it is McKinsey itself that holds the debt, albeit, through affiliates, and he at least implies that McKinsey knew it held that debt when it was retained. As McKinsey has explained to me, those are not the facts, nor does Mr. Cuevas get the law right.

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