CUSIP 72177MDL8
- ISIN: US72177MDL81
- Entity Name: Industrial Development Authority of the County of Pima/The
- Sector: Municipal Agency
- Announcement Date: 15-May-2017
- Effective Date: *****
- Issue Date: *****
- Maturity Date: 01-Jul-2033
- Country of Issuer: United States
- Region: N.Amer
- Issue Currency: United States of America Dollars
- CA Type: Default Notice
- News: UMB Bank, N.A. is successor trustee (the Trustee) under that certain Indenture of Trust (the Indenture) dated as of August 1, 2003 between the National Bank of Arizona and the Industrial Development Authority of the County of Pima (the Issuer). The Issuer lent the proceeds of the bonds to Phoenix Advantage Charter School, Inc. (the Borrower) pursuant to the terms of that certain Loan Agreement dated as of August 1, 2003 (the Loan Agreement). Capitalized terms not defined shall have the definitions ascribed them in the Indenture. Recently the Borrower released the report on its audited financial statements for the Fiscal Year ended June 30, 2016 on The Electronic Municipal Market Access system. The report notes that the Borrower is in default on certain covenants under its loan agreement and contains a going concern qualification. As noted in the report to the financial statements, the following Events of Default and defaults under the Indenture and Loan Agreement have occurred and are outstanding: (i) The Borrower failed to achieve a Historical Debt Service Coverage Ratio of at least 1.00 for the Fiscal Years ended June 30, 2015 and June 30, 2016, each of which failures constitutes an Event of Default under the Loan Agreement; (ii) The Borrower failed to deliver a five-year comprehensive capital plan within 120 days after the end of the Fiscal Year 2015 and Fiscal Year 2016, which failure as to Fiscal Year 2015 constitutes an Event of Default and as to Fiscal Year 2016 constitutes a default; and (iii) The Borrower failed to deliver a non default certificate within six weeks after the end Fiscal Years 2015 and 2016, which failure as to Fiscal Year 2015 constitutes an Event of Default and as to Fiscal Year 2016 constitutes a default. The Borrower has retained Aspire Business Consultants, Inc. (the Consultant) to perform certain management consultant services, including but not limited to providing a turnaround financial plan and providing recommendations. The Bond Insurer is in discussions with the Borrower regarding the defaults and the financial performance of the School in general. After the Consultant prepares its report, the Trustee in consultation with the Bond Insurer will determine how it will proceed and will inform holders.
- Description: Municipal Name: Industrial Development Authority of the County of Pima/The Cusip: 72177MDL8 Currency: USD Industrial Development Authority of the County of Pima/The today announced the event of default has occurred when borrower failed to achieve a historical debt service coverage ratio, deliver a five-year comprehensive capital plan and deliver a ?non default? certificate relating to the Series 2003 Revenue Bonds.
- Bond Document: https://www.bondpdf.com/
- Latest Corporate Actions: https://www.CAalerts.com/credit-corporate-action/ISIN/US72177MDL81
