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Boys and Girls Home bond trustee eyes order related to facility sale
By Caroline Salls
Pittsburgh, March 7 – The indenture trustee for the Boys and Girls Home and Family Services, Inc.’s Alaska and Iowa revenue and revenue refunding bonds asked the Hennepin County Minnesota District Court to confirm that acceptance of the proceeds of the sale of a psychiatric treatment center in Fairbanks, Alaska, in exchange for cancellation of its interest in the deed of trust is in the best interests of the bondholders.
In addition to the Boys and Girls Home and Family Services, trustee UMB Bank, NA said in a notice released Monday that the “obligated group” for the revenue bonds includes Boys and Girls Home of Nebraska, Inc., Boys and Girls Home Residential Treatment Centers, Inc., Home Care Services, Inc., Family Services, Inc. and Iowa’s Missing and Exploited Children, Inc.
The proceeds of the bonds were loaned to Boys and Girls Family Services, Inc. for refund of previous bonds, finance of working capital needs of the obligated group and the acquisition, purchase, construction, equipping and furnishing of the Fairbanks facility.
UMB said it reached an agreement to sell the facility in January. Under the asset purchase agreement, the final closing of the sale is conditioned upon receipt of the court order in question.
Upon receipt of the net sale proceeds, the trustee said the funds will be applied first to any costs or other expenses incurred by UMB, and then to distributions for bondholders.
UMB said events of default are continuing under the indentures as a result of the failure of the obligated group to make the full monthly debt service deposits due since June 2010.
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