Monarch Landing warns it may have problems accessing working capital

New York, July 1 - Monarch Landing, Inc. said it may have difficulty obtaining needed working capital because its source of funding, Naperville Campus, LLC and Erickson Retirement Communities, LLC, is negotiating covenant waivers and loan extensions with its lenders.

Monarch Landing said it is "reliant" on Naperville and Erickson for working capital.

Because of the uncertainties about Erickson, Monarch Landing said it has been "unable to receive assurance that Erickson can provide such working capital as the corporation may need."

Monarch Landing has $178.745 million of series 2007 A and variable-rate series 2007 B revenue bonds issued through the Illinois Finance Authority outstanding.

The bonds were issued on Dec. 27, 2007.

Because of the troubles it has failed to file financial statements for the fiscal year ended Dec. 31, 2008 by June 1, as required.

Under the letter-of-credit agreement for the variable-rate bonds, Monarch was supposed to have provided financial statements to Fifth Third Bank by April 30. It has requested a waiver from the bank.

According to the notice, Monarch does not know when it will be able to make the required filings.

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