The Mystic Aquarium & Institute for Exploration in Connecticut got a lifeline on Tuesday from Citi, which agreed to forgive $13.4 million of debt and convert $19 million of outstanding bonds into an effective loan.

Last week, Citibank, which provided a letter of credit for $33.1 million of outstanding bonds, declared a default and accelerated payment of the bonds. Thursday, trustee M & T Trust Company of Delaware drew on the letter of credit and paid principal and interest on the bonds to the Depository Trust & Clearing Corp., which was responsible for paying those funds to bondholders.

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