Bond defaults

Fitch Ratings received enough inquiries over S&P's action — slashing a Chicago suburb's GO rating by seven notches — that it put out a special commentary outlining differences between the two agencies' analytical approach even though Fitch does not rate the village under scrutiny.

A reserve account doesn't hold enough cover the semi-annual $8.7 million interest payment, said the bond's trustee.

Bolingbrook called the GO cut to BBB-plus from AA an attempt "to cause a de facto conversion" of a special sales tax district's debt to a general obligation.

Christian Care Centers' bankruptcy liquidation plan leaves bondholders impaired after an asset sale raised only $44.25 million.

The complex restructured its debt through bankruptcy in 2018 but COVID-19 knocked its recovery off track.

Legacy Cares, which built Bell Bank Park in Mesa, was due to make a $10.3 million interest payment Jan. 1, but only had $2.68 million in the bond fund, the trustee said.

Legacy Cares, which left construction contractors unpaid and had its bond trustee declare a default event, says a new debt sale will clear up its fiscal issues.

Balance sheet damage from labor costs, the pandemic and a cybersecurity breach triggered covenant violations for Capital Region Medical Center.

The trustee for $800 million of PILOT bonds for the New Jersey shopping complex said the mall's owners were $2.6 million short for a Dec. 1 payment.

Texas trails only Florida for first-time payment defaults on bonds issued for senior health and living facilities for seniors since 2009, according to MMA data.

Leading Life Senior Living in 2020 defaulted on $30.275 million of bonds it sold in 2017 through the Oklahoma Development Finance Authority to purchase two memory care facilities.

The agreement has the potential to ease pressure on $1.7 billion of separate tax-exempt bond debt taken on to finance the massive mall and entertainment venue.

Nonprofit Legacy Cares failed to make three monthly payments to support debt service on $284 million of bonds issued for a multiport venue in Mesa, Arizona.

Maryland Heights, Missouri, believes the fiscal strains from the St. Louis Blues practice facility will fade as activity picks up without pandemic restrictions.

Moody's said 35 out of the 82 borrowers that disclosed first-time draws on debt service reserve funds since April 2020 have averted delinquency "at least for now."

Officials are aiming by fall to finalize a bond exchange offer that would restructure general obligation bonds and resolve a legal dispute with bondholders.

The New Jersey mall, the nation's second largest, faces an interest payment on Aug. 1 after drawing down a debt service reserve for a payment earlier this year.

The mall's developer was late paying funds used to support $800 million of municipal bonds, requiring a draw on reserves to make an interest payment.

Talks between original holders and a law firm over potential securities fraud litigation did not pan out, and trustee UMB NA has canceled all the bonds.

Moody's views 16 first time payment delinquencies over the last two years impacting $1.46 billion of debt as related to the pandemic's toll on the senior-living sector.