CUSIP 143298AB3


  • ISIN: US143298AB30
  • Entity Name: City of Carmel
  • Sector: Municipal
  • Announcement Date: 28-Jan-2019
  • Effective Date: *****
  • Issue Date: *****
  • Maturity Date: 15-Nov-2022
  • Country of Issuer: United States
  • Region: N.Amer
  • Issue Currency: United States of America Dollars
  • CA Type: Payment Acceleration
  • News: THIS NOTICE CONTAINS IMPORTANT INFORMATION THAT IS OF INTEREST TO THE REGISTERED AND BENEFICIAL OWNERS OF THE ABOVE BONDS. IF YOU RECEIVE THIS NOTICE AND ARE ACTING FOR A BENEFICIAL OWNER, PLEASE SEND THIS NOTICE TO THE BENEFICIAL OWNER(S) IMMEDIATELY. UMB Bank, N.A. (the Trustee) is the successor bond trustee under the Bond Indenture between the City of Carmel, Indiana (the Issuer) and The Bank of New York Mellon Trust Company, N.A., as predecessor to the Trustee dated as of August 1, 2012 (the Bond Indenture) and the successor master trustee under the Master Trust Indenture between Mayflower Communities, Inc. (the Borrower) and The Bank of New York Mellon Trust Company, N.A., as predecessor to the Trustee dated as of August 1, 2012 (the Master Indenture), each related to the Bonds. The Borrower owns The Barrington of Carmel, a continuing care retirement facility in Carmel, Indiana (the Facility). As used herein, the Bond Indenture, Master Indenture, the Loan Agreement, the Mortgage, and the other document evidencing or securing the Bonds may be referred to as the Bond Documents. Capitalized terms used in this notice and not otherwise defined shall have the meanings given in the Master Indenture. Holders of City of Carmel, Indiana Bonds (The Barrington of Carmel) January 28, 2019 Page 2 As set forth in a prior notice, the Borrower failed to make its monthly payment due on November 10, 2018. Instead, the payment due on the Bonds on November 15, 2018, was paid by using reserves held in the trust estate. Under the Master Indenture, the Borrowers monthly payments are aggregated to make the semi-annual interest payments due on the Bonds. The next semiannual payment due on the Bonds is due and payable on May 15, 2019. Since the last notice provided by the Trustee, the Borrower also failed to make its monthly debt service payments due on December 10, 2018 and January 10, 2019. Holders of a majority in principal amount of the Bonds outstanding have certain rights under the Bond Documents to direct the method and place of conducting remedial proceedings under the Bond Documents. With the direction of holders of a majority in principal amount of the Bonds (the Majority Holders), the Trustee notified the Borrower by letter dated January 17, 2109 that events of default had occurred under the terms of the Master Indenture, the Loan Agreement by and between the Borrower and the Issuer dated August 1, 2012 (the Loan Agreement), and the Mortgage, Assignment of Leases and Rents, Security Agreement, and Fixture Filing between the Borrower and the Master Trustee dated as of August 1, 2012 (the Mortgage). In addition, the Trustee notified the Borrower that it has accelerated all Obligations outstanding, including principal and interest on the Series 2012A Note, effective as of the date of the notice to the Borrower. As a result of the occurrence of the events of default described above, under the direction of the Majority Holders, on January 18, 2019, the Trustee filed a civil complaint in the court in Hamilton County, Indiana, where the Facility is located, along with a motion to have a receiver appointed to manage and operate the Facility. A receiver is a court-supervised person named to stand in the shoes of a debtor, such as the Borrower. If the court appoints the receiver in accordance with the Trustees motion, it is expected that the receiver will monitor and oversee the management of the Facility, currently provided by Seniority, Inc. If the receiver concludes that the current manager has not managed the Facility in a manner which would allow it to pay its debt service, it is anticipated that the receiver will consider removing the current manager and replacing it with another management company experienced in the management of entrance fee-based luxury senior housing facilities. The receiver will not manage the Facility on his own. In order for the Facility to pay its debt service, it is essential for the quality of care and standard of living at the Facility to be maintained. The Trustee has insured that the receiver it recommended to the court appreciates this circumstance. The court scheduled a hearing on the Trustees motion for the appointment of a receiver on January 28, 2019, but during the time between the Trustees motion for appointment of a receiver and the hearing date, the Borrower removed the receivership matter to federal court in Indianapolis, Indiana. As a result, the hearing scheduled for January 28, 2019, was vacated. The Trustee does not yet know when a hearing will be scheduled in federal court on the receivership matter. For Bond Document please visit www.BondPDF.com
  • Description: Municipal Name: City of Carmel CUSIP: 143298AB3 Currency: USD City of Carmel today that the trustee accelerate and declare the payment of principal under the Bonds to be due and payable immediately relating to Series 2012A, Revenue Bonds.
  • Bond Document: https://www.bondpdf.com/
  • Latest Corporate Actions: https://www.CAalerts.com/credit-corporate-action/ISIN/US143298AB30

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