CHICAGO — The trustee for $39 million of defaulted appropriation-backed bonds issued for a failed artificial sweetener plant in Moberly, Mo., won’t tap dwindling reserves to cover the March 1 debt service payment.

In a bondholder notice issued earlier this week, UMB Bank NA reported that it sent a notice to the city and the conduit issuer, the Moberly Industrial Development of Authority, on Feb. 27, informing them that because of the ongoing default, all principal and accrued interest was due immediately. The acceleration is permitted under the bond indenture.

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.