SAN FRANCISCO, July 20 (Reuters) – The following were
Stockton, California’s proposals regarding its bonds during its
three months of pre-bankruptcy mediation with creditors,
including bond insurers:
* For the $124.3 million it still owes on its 2007 pension
obligation bonds, Stockton proposed that it be allowed to make
debt payment from solvent restricted fund sources and end
payments from its main budget, or General Fund, which provides
82.6 percent of the money for debt service payments on the
bonds. The bonds would be deeply impaired. Assured Guaranty
insures the bonds.
* For the remaining $12.97 million it owes on its 2003
certificates of participation, Stockton proposed it be allowed
to suspend payments for five years and make interest-only
payments for a further five years, followed by 30 years of full
amortization.
Stockton said it would seek to service the debt from
available housing revenue from its former redevelopment agency
and continue the guaranty of its General Fund for the
restructured obligation. Ambac insures the debt.
* Stockton said it would not seek to reestablish possession
over the assets it handed over to Wells Fargo so that it would
not need to restructure $31.6 million still owed on its 2004
lease revenue bonds. National Public Finance Guarantee was the
bond insurer.
* For the $45.6 million it still owes on 2004 redevelopment
area revenue bonds, Stockton said it was not seeking debt
relief, noting revenue from the project area would be used to
pay the obligation in full as originally scheduled. However, the
city said its expectation relies on “certain growth assumptions
and cannot be guaranteed”. The city said that it was seeking to
eliminate its General Fund backstop for the obligation. National
Public Finance Guarantee was the insurer on the debt.
* For its remaining $16.2 million in 2006 lease revenue
refunding bonds, Stockton said it wanted debt service relief for
five years followed by interest only payments for another five
years and then 30 years full amortization. Stockton said it
would pledge parking district revenues and public facilities
fees to the obligation and remove its General Fund guarantee.
National Public Finance Guarantee Corp insures the bonds.
* For its $40.4 million still owed on its 2007 variable rate
demand lease revenue bonds, Stockton likewise proposed five
years of debt relief followed by five years of interest only
payments and 30 years of full amortization. If offered to pledge
revenue from building revenues and the city’s General Fund
guarantee. Assured Guaranty insures the debt.
* For $35.1 million still owed on 2009 Stockton Public
Financing Authority lease revenue bonds for capital improvement
projects, the city proposed its General Fund no longer subsidize
the payment of debt service. Public facilities fees would
instead be phased in to cover the payments. The debt is not
insured.
(Reporting by Jim Christie; Editing by Louise Ireland)
