**BGC Partners Advisory to Dissolve Amidst Financial Oversight Changes**
BGC Partners Advisory, a boutique restructuring firm founded in 2024 by former Citigroup public finance bankers, is set to dissolve. The firm has been a key advisor to Puerto Rico’s financial oversight board, which oversees the island’s fiscal management and the bankruptcies of its government entities. The oversight board has received formal notification from BGC regarding its impending dissolution.
Matthias Rieker, a spokesperson for the oversight board, confirmed via email that BGC has expressed its intention to dissolve its partnership. He noted that the board will announce its decision regarding future financial advisory services at an appropriate time, emphasizing that BGC’s decision is not expected to affect the ongoing debt restructuring of Puerto Rico’s Electric Power Authority (Prepa).
BGC was established in January 2024 by David Brownstein, the former head of Citi’s public finance department, along with ex-colleagues John Gavin and James Castiglioni. The firm’s dissolution follows the expiration of its latest contract with the financial oversight board on June 30. In September, BGC submitted its final compensation application to Puerto Rico’s bankruptcy court, covering fees and expenses through the end of that month.
Prepa has been in bankruptcy since 2017, with nearly $9 billion in outstanding debt. Progress on the bankruptcy has stalled as the court seeks to resolve disputes between bondholders and the oversight board regarding Prepa’s revenues before considering any restructuring proposals. This situation has significantly reduced BGC’s workload.
In August, BGC faced criticism on social media when far-right activist Laura Loomer highlighted the firm’s $850,000 monthly retainer. This scrutiny coincided with the Trump administration’s dismissal of several board members, citing the prolonged bankruptcies on the island. Despite these challenges, the oversight board has successfully negotiated $55 billion in creditor payment reductions over 40 years. Three board members have since filed lawsuits for reinstatement, and a judge ruled in October that they could continue their duties while the case is ongoing.
In related news, James Castiglioni has joined Huntington National Bank as a managing director in its New York City office. Castiglioni, who previously led financial structuring at Citi, brings nearly 14 years of experience, including overseeing over 50 municipal debt transactions totaling $50 billion.
**FAQ**
**What led to the dissolution of BGC Partners Advisory?**
BGC Partners Advisory is dissolving following the expiration of its contract with Puerto Rico’s financial oversight board and a significant reduction in its workload due to stalled bankruptcy negotiations for the Electric Power Authority.
