St. Paul Port Authority/Bond Issue

9/1/2006

Keith Broady and Phil Cole appeared in Ramsey County District Court on August 30th representing 75 bondholders owning $16.5 million in bonds issued by the Port Authority involving the 876 Common Bond Fund. There are outstanding bonds of about $51.6 million. Therefore, our bondholders hold over 30% of the principal amount of the outstanding bonds. We opposed the Port Authority’s Petition to construe the bond agreements and allow the Port Authority to proceed with a liquidating process. We also requested a receiver be appointed who has fiduciary duties to the bondholders. We claim that the Port Authority has a conflict of interest. The Port Authority is requesting the court release it from its pledge of revenues to the bondholders from many properties that the Port Authority owns and operates.

Judge Marrinan scheduled another hearing for November 17, 2007 for trial of issues related to a) the court’s subject matter jurisdiction; b) the bondholders’ Petition for a Receiver; and c) the Port Authority’s Petition.

Check out the attached article from the Star Tribune concerning the case.