Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers C > Headlines for Connector 2000 Association, Inc. > News item |
Connector 2000 funds to fall short of Jan. 1 bond payments; restructuring talks into 2010
By Caroline Salls
Pittsburgh, Dec. 11 - The trustee for Connector 2000 Association Inc.'s toll road revenue bonds said there will not be enough revenues and money in debt service reserve funds to make payments due on the bonds on Jan. 1, according to a notice to bondholders from trustee U.S. Bank, NA.
The trustee said the association has concluded that a restructuring of the bonds is necessary, either in or outside of a bankruptcy or other court proceeding.
U.S. Bank said restructuring talks have been progressing and are expected to continue at least into the first part of 2010.
According to the notice, ongoing work after Jan. 1 is considered necessary to optimize the potential for a consensual restructuring plan for Connector, despite the anticipated payment defaults, to best address the revenue shortfalls.
The trustee said a consensual restructuring would be aided by the passage of legislation in the 2010 session of the South Carolina General Assembly.
As previously reported, the trustee had to withdraw funds from a senior bond debt service reserve account to make a portion of the $1.72 million interest payment due July 1 on the association's series 1998A bonds.
Connector 2000 is a South Carolina non-profit public benefit corporation.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.