MJH Education defaults on Fullerton Village Project payments; trustee forming bondholder committee

By Caroline Salls

Pittsburgh, Oct. 16 - MJH Education Assistance Illinois IV LLC is in default on payments due in connection with the Illinois Finance Authority's student housing revenue bonds for the Fullerton Village Project, according to a notice to bondholders.

According to the notice, payments by MJH Education Assistance Illinois under a 2004 loan agreement and the series 2004 revenue bonds support payments are due on the bonds.

However, MJH has failed to make some of the scheduled principal and interest payments required by the financing agreement, which has triggered events of default on the credit agreement and bonds.

Indenture trustee U.S. Bank NA said it is evaluating available options, and the trustee is soliciting interest from bondholders to participate in a restricted negotiating committee.

The Illinois Finance Authority issued $57.43 million of series 2004A bonds, $14.81 million of series 2004B bonds and $13.8 million of series 2004C bonds in connection with the Fullerton Village Project, the notice said.

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