Bronx Parking inks revenue bond forbearance amid restructuring talks

By Caroline Salls

Pittsburgh, May 16 - Bronx Parking Development Co., LLC obtained a forbearance agreement from the trustee for its $237.64 million of New York City Industrial Development Agency Civic Facility revenue bonds, series 2007, according to a notice from trustee U.S. Bank NA.

Under the agreement, the bondholders will not exercise any bond payment and installment sale agreement default-related rights through Aug. 1.

The trustee said holders of at least 75% of the outstanding principal amount of the bonds, as well as directing bondholders, authorized it to execute the forbearance agreement.

U.S. Bank said it is in talks with the City of New York regarding the bonds, the default and the forbearance agreement.

Interaction with the city, Bronx Parking and the directing holders are expected to continue in the near future.

According to the agreement, the forbearance is designed to give the company and the bondholders enough time to negotiate a restructuring of the bonds, the installment sale agreement and other security documents and avoid the need for a Chapter 11 bankruptcy filing.

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