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Lombard Public Facilities misses payments due Jan. 1 on revenue bonds
By Caroline Salls
Pittsburgh, Jan. 4 – Lombard Public Facilities Corp. received a fifth notice of default in connection with its failure to make the principal and interest payment due Jan. 1 on its series 2005A-1 and series 2005A-2 first-tier conference center and hotel revenue bonds and series 2005B second-tier conference center and hotel revenue bonds.
According to a notice from bond trustee Amalgamated Bank of Chicago, the trustee will use a portion of available funds on hand to pay interest due on the first-tier and second-tier bonds and use funds received from the bond insurer to complete the series 2005A-2 principal and interest payment.
Specifically, bond insurer ACA Financial Guaranty Corp. directed the trustee to use $2.65 million from an available revenues fund to pay a portion of interest due on the first-tier bonds and $443,080 from the fund to pay a portion of the interest due on the second-tier bonds, as well as using insurer funds to complete the series 2005A-2 payment.
Lombard said in a company news release that $1.08 million of principal and $599,591 of interest went unpaid for the Jan. 1 debt service payment of the series 2005A-1 first-tier revenue bonds, and paid $905,000 of principal and $387,754 of interest for the Jan. 1 debt service payment of the series 2005A-2 first-tier bonds.
Lombard said $450,000 of principal and $653,110 of interest was unpaid for the Jan. 1 debt service payment of the series 2005B second-tier bonds.
A $2.3 million debt service payment was scheduled for Jan. 1 on the company’s series 2005C, series 2006C-2 and series 2006C-3 conference center and hotel third-tier revenue bonds, according to the Lombard news release, and that amount was not paid.
As previously reported, additional existing defaults arose from the company’s failure to fund payments on the first-tier bonds due Jan. 1, 2015 and July 1, 2015 and to fund payments due on the second-tier bonds due Jan. 1, 2014, July 1, 2014, Jan. 1, 2015 and July 1, 2015.
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