Monarch Landing revenue bond trustee skips payment; 2007 B bonds set for mandatory tender

By Caroline Salls

Pittsburgh, Dec. 1 - The trustee for the Illinois Finance Authority's Monarch Landing, Inc. revenue bonds did not make the interest payment due Dec. 1 on the bonds, according to a notice to bondholders from trustee Wells Fargo Bank, NA.

Wells Fargo said events of default have occurred under the bond indenture and the Monarch Landing loan agreement.

The trustee said it did not make the Dec. 1 interest payment at the direction of a majority of the bondholders in order to preserve greater flexibility for a resolution of the financial issues at the Monarch Landing facility.

In addition, Wells Fargo said an event of default has occurred on the letter-of-credit agreement with Fifth Third Bank that secures the $17.78 million of series 2007 B Monarch Landing revenue bonds.

As a result, Fifth Third Bank has directed the trustee to call the bonds for mandatory tender on Dec. 2.

The bonds will be purchased at par on the tender date.

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