CHICAGO - The Fox River Valley city of Menasha, Wis., and its advisers are continuing "good-faith" negotiations with investors who hold $24 million of city appropriation-backed steam plant revenue bond anticipation notes following the city's default on the notes that were due Tuesday.

The $24 million of debt comprises $12.6 million of Bans sold in 2005 to convert Menasha Utilities' power plant to coal-fired steam operations and $11.5 million issued in 2006 to cover the project's growing costs. Both are secured by steam plant revenue but are backed up with a city appropriation pledge.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.