CHICAGO -
Bondholders will have a chance to learn more about the lease agreement signed last month for a portion of the facility site that United abandoned after filing for bankruptcy during a conference on Thursday, according to a material event notice filed by the trustee, Bank of New York Trust Company.
The notice identified the order in which payments would be made once the trustee receives them from the new tenant, but outlined no timeframe for when the bondholders will be paid. The Bank of New York assumed that role after it acquired the trust division of Fifth Third Bank, the original trustee on the bonds.
The trustee scheduled the call with the airport and its marketing consultant, Simat, Hellisen & Eicher, Inc., for 11 a.m. Eastern Daylight Time, according to the notice. Bondholders may ask questions or to forward questions to the trustee's counsel, Mintz, Levin, Cohn, Ferris, Glovsky and Popeo.
The Indianapolis airport authority hired Simat, at the request of bondholders, to market the space that includes 12 hangars and office, storage, and workshop space, according to Mark Moore, director of the Indiana Development Finance Authority, which is working to see that the facility is reused.
Last month, the airport announced a 10-year lease agreement with AAR Aircraft Services, Inc., a subsidiary of AAR Corp., to fill roughly half of the facility that United left vacant in 2003. Chicago-based AAR supplies products and services to the aviation and aerospace industry. The lease provides an option for another 10 years.
The rent and tax increment finance revenue will be placed into a general account. The funds in that account will be used to pay first for the marketing of the facility. Then, the funds will be used to pay for the facility's operating expenses and reimbursement of care and maintenance of the facility, costs incurred by the airport authority, and the trustee, on behalf of bondholders.
In addition, the fund will be used to pay debt service going forward on the outstanding bonds and for other capital improvements including approximately $2 million for the cleanup of hazardous material that was found during an environmental inspection.
The city and the airport continue to negotiate with other potential tenants for the remainder of the site, Moore said Friday. The airport has not signed any additional tenants, said Dennis Rosebrough, the public affairs director for the airport.
