ALABAMA: Failing Visionland

SunTrust Bank, the trustee for the Visionland amusement park, released a notice to investors Tuesday stating that there were insufficient revenues on deposit to pay debt service that is due today.

The West Jefferson Amusement and Public Park Authority issued $90 million of revenue bonds for the park in 1999, which are now in default. No payments on the bonds have been made to date, other than an $844,000 partial payment in February 2001.

On June 4, attorneys representing the park filed for Chapter 9 bankruptcy protection in U.S. Bankruptcy Court in Birmingham. The park owed bondholders $90 million and other creditors $10 million.

The $90 million of unrated tax-exempt first mortgage revenue bonds, with maturities from 2006 to 2029 and interest rates between 6% and 8%, were used to acquire, construct, and equip additions and improvements to an existing amusement park.

Under protection of the bankruptcy court, the theme, ride, and water park opened some of its facilities on June 14 even as its owners were trying to sell it. Attendance this summer has been much lower than expected, a major factor that has hindered the park from becoming profitable and meeting its debts.

International Theme Park Services of Ohio has been hired to market the park, which has a price tag of $25 million.