New York's Yankee Stadium parking garage operator missed payment of US$6.9 million interest to its bondholders yesterday according to a report filed with the securities regulator.
This is Bronx Parking Development Corp's first time to skip its payment to investors. In a telephone interview with the company's lawyer, Steven Polivy of Akerman Senterfitt LLP, he confirmed the missed payment. He also said that the next payment is schedule for October 1 in the amount of US$8.1 million. He did not confirm if the said October payment would also be made or missed.
The company issued US$237.6 million in municipal bonds back in 2007 through the Industrial Development Agency of New York City. The proceeds of the bond issue would be to build three garages and renovate two other existing ones. Unfortunately, the parking structures have not generated enough revenues. The company is even contemplating seeking Chapter 11 protection, hiring Wilkie Farr & Gallagher for bankruptcy counseling and advice.
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