In one of my previous blog post, I discussed that PREPA had made a deal with Free Point Commodities, LLC, to buy fuel for its plants and that Stone Point Capitol has investments in Free Point Commodities, LLC, AND in Millstein & Co., Jim Millstein is also is the Chief Executive Officer of Millco Advisors, LP, and Millstein & Co., which raises several flags.
Both Bloomberg and Business Wire have reported that Jim Millstein is involved in the restructuring of PREPA. In addition, sources tell me half of the meetings dealing with the PREPA restructuring have been in his office.
Upon further investigation, the timing of the Stone Point Capitol investment in Millstein & Co. is disturbing. In July 9, 2015, both parties announced that the former had acquired a minority interest in the latter. It also states “Millstein & Co. will use proceeds of the investment to bolster its principal investment business.” This means the transaction brought actual cash to Millstein.
On August 24, 2015, PREPA announces that it has reached a $869.6 million deal with Free Point Commodities, LLC. We all know that negotiations for such a huge contract take much more than 46 days so when Stone Point Capitol purchased an interest in Millstein & Co., these negotiations with its subsidiary were ongoing or about to begin.
Question is, what involvement, if any, did Jim Millstein have in the negotiations of such an important fuel contract? Did the purchase of an interest in Millstein & Co. have anything to do with the contract negotiations of this contract? The people of PR have a right to know what are its advisors up to. Explanations are in order.