Monarch Landing, Ill., misses July, August bond interest payments

By Caroline Salls

Pittsburgh, Aug. 13 - Monarch Landing, Inc. did not make the interest payments due July 1 and Aug. 1 on its $178.75 million of Illinois Finance Authority revenue bonds, according to a notice to bondholders.

As a result of the company's failure to make the $734,039 payment due July 1 on the series 2007A revenue bonds, the indenture trustee launched a 30-day grace period for that payment on July 27.

According to the notice, Monarch relies on advances from Naperville Campus, LLC and Naperville Campus' sole member, Erickson Retirement Communities LLC, for its working capital needs.

Erickson is in negotiations with its lenders regarding credit facility extension and covenant waivers, according to the notice.

As a result of the current economic conditions and continued uncertainties regarding Erickson's financial situation, Monarch said it has not received the working capital it needs from Erickson to make the bond payments.

Monarch is working with its financial advisers to explore alternative sources of working capital.

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