876 Bondholders Seek Approval of Settlement
9/20/2011
Press Release
For Immediate Release
September 20, 2011
Plaintiffs 876 Bondholders and the Port Authority filed a motion today with the Ramsey County District Court requesting the Court grant preliminary approval of a settlement agreement. The court hearing is scheduled for September 22, 2011. If the Court grants preliminary approval, there will be notice sent to all 876 Bondholders and another court hearing near the end of October 2011 for final approval.
Keith Broady of Lommen Abdo Law Firm, lead attorney for Plaintiffs, is recommending approval of the settlement agreement to the Court because:
- The settlement ends over five years of contentious litigation with the Port Authority, including an appeal to the Minnesota Supreme Court in 2009 in which the bondholders prevailed.
- Under the proposed settlement agreement, the Port Authority will make full payment of all current and past due interest through December 1, 2011 and bondholders will continue to receive payments on their 876 Bonds for over twenty years through September 1, 2032, as opposed to having all bonds cashed out at a discounted amount in 2006.
- Approximately $10 million will be used for a Dutch auction in which bondholders who wish to tender their 876 Bonds for a discounted principal amount will have an opportunity to sell their bonds.
- Both the short term and long term returns on 876 Bonds will be substantially better for the bondholders than if the Port Authority had cashed out all 876 Bonds in 2006.