Bond defaults

The Florida-based mining company failed to make $10 million in principal and interest payments due on Jan. 1. Florida had the largest number of defaults in 2024 at nine, per Municipal Market Analytics, Inc.

It's the latest mark of distress for proton treatment centers financed with speculative-grade municipal bonds.

Several metropolitan districts, which finance public infrastructure for housing developments, tapped contingent liquidity for debt service payments this month.

The central Texas city of Clyde said it issued tax and revenue anticipation notes with a 9.5% interest rate to repay its insurers after an Aug. 1 bond default.

Bondholders are prepared to loan up to $22 million to the hospital.

The borrowers had failed to make principal payment on November 1 due date, but have since remitted the funds.

Litigation in Arizona, Oklahoma, Texas, and Utah could determine bond issuance, culpability for defaults, or the constitutionality of underwriter bans.

The city of Clyde defaulted in August and recently revealed it used debt proceeds for debt payments in a manner that "disguised the deficit cash flow."

Eisner Advisory Group Partner Allen Wilen is the chief restructuring officer for Jackson Hospital & Clinic.

The borrower has missed the last five interest payments on the grant-backed bonds.