CHICAGO — Investors who hold $23 million of defaulted steam-plant bond anticipation notes, which the city of Menasha put its appropriation pledge behind, warned in their latest court filing that the municipal world is following their federal lawsuit and their claims the Wisconsin city misled potential investors.

“The eyes of the municipal finance world will be focused on this lawsuit to determine if it will provide legal precedent for municipalities around the country to ignore or nullify similar governmental obligations,” lawyers for a group of noteholders wrote last week in response to the city’s dismissal bid.

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