Bond defaults

The cut to the American Dream mall's assessed value is a warning sign to bondholders whose debt payments are tied to how much the property is worth.

Randy Miller, 70, and Chad Miller, 41, entered guilty pleas Wednesday in the Legacy Cares securities fraud case and will be sentenced at a later date.

Part of the problem is lack of reimbursement from insurance companies, said the owner of one proton center.

The bond trustee filed notice of a settlement that would extend the maturity of the Industrial Development Authority of Platte County Zona Rosa bonds 30 years.

Fallout from the Legacy Cares deal includes bondholder lawsuits against the underwriter and bond counsel, payment defaults, a Chapter 11 bankruptcy, and now fraud charges from the SEC and DOJ.

The SEC and DOJ announced charges in connection with municipal bonds issued for the Legacy Cares sports complex in Arizona, which defaulted and went bankrupt.

An Illinois park district became the only local general obligation credit to default in 2024, according to Municipal Market Analytics.

A bondholder group is negotiating with the school, which continues to operate.

Bond trustee UMB Trust has engaged Lighthouse Management Group to serve as the receiver.

Legislation to continue a sales tax and revenue bond program until July 1, 2028, and allow its use for mall redevelopment projects, passed the Senate.

A charter school in San Antonio is expected to close at the end of the year, jeopardizing $25 million of municipal bonds the institution borrowed in 2022.

A federal court has given an outside debtor-in-possession loan "superpriority" over the bondholders' lien.

Management is hiring a municipal advisor to evaluate its financial strategy.

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.