CHICAGO — Repayment of $46.6 million of taxable tribal gaming revenue bonds issued for the Lac du Flambeau tribe in Wisconsin is in the hands of a federal appellate panel after lawyers for the tribe and bondholders laid out their arguments in a dispute over whether the trust indenture required federal approval.

The bond trustee, Wells Fargo Bank NA, acting on behalf of the sole bondholder, Saybrook Capital LLC, last December sought to enforce bondholder rights under the trust indenture after declaring an event of default on the bonds and accelerating bond repayment. The trustee sought the appointment of a receiver, arguing that Lake of the Torches Economic Development Corp. — the tribe’s corporate entity, which issued the bonds — had violated terms of the bond indenture.

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