CHICAGO - The owners of St. Louis' convention center hotel complex defaulted on a $3.5 million debt service interest payment due this week on $98 million of senior-lien revenue bonds, although investors holding a majority of the debt have approved the distribution of $500,000 in reserves to partially cover the $1.57 million shortfall.

Trustee UMB Bank NA alerted bondholders of the event of default in a Dec. 17 notice after the full payment was not made on Monday. The formal deadline to cover the shortage, however, was yesterday.

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