| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers P > Headlines for Philadelphia Authority for Industrial Development > News item |
Bondholder committee formed in light of Philadelphia Authority default
By Caroline Salls
Pittsburgh, Oct. 24 - A steering committee of Philadelphia Authority for Industrial Development bondholder volunteers has been formed in connection with defaults on the authority's Please Touch Museum project revenue bonds, series 2006, according to a notice from bond trustee U.S. Bank, NA.
The trustee said the committee was formed to provide input regarding available options and deployment of trust assets.
The steering committee met with the trustee and museum representatives on Oct. 17 to discuss the events of default and the museum's current status.
A further meeting, which will include members of the museum's board, is expected to be held soon.
The steering committee and trustee have also asked the museum to provide current financial reports.
As previously reported, the trustee had to withdraw the funds for a Sept. 1 interest payment on the bonds from a debt service reserve fund, triggering an event of default.
The bond proceeds were loaned by the authority to the museum on Nov. 1, 2006.
The museum is obligated to make loan payments to U.S. Bank by the business day immediately preceding each interest payment date. Those loan payments must be at least equal to the amount of the principal and interest due on the bonds on the interest payment date.
The trustee said the museum failed to make the loan payment in connection with the Sept. 1 interest payment. As a result, the debt service fund did not have sufficient funds to make the full payment due to bondholders.
U.S. Bank said the museum's failure to immediately notify it of the reason for the missed payment also constituted an event of default.
According to a previous notice, the museum is required to replenish the debt service reserve fund at least one month before the next interest payment date of March 1.
© 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.