New York-based debt of distressed companies monarch alternative capital and Davidson Kempner Capital Management buys bonds, according to a Bloomberg report.
Bonds, who represents 237.6 million dollars of tax-exempt debt, was issued by Bronx parking Development Co., of New York City industrial development in 2007 to build three garages, renovate two others and renovate six lots near the stadium.
Both the monarch and Davidson Kempner join an existing group of bondholders which contains Chicago-based Nuveen Investments.
Hedge funds along with fellow bondholders are also good opportunities to own properties in Bronx parking lot by default on debt payments in the future.
Yankees Stadium facilities will not be able to generate sufficient operating revenue to make an interest payment on 1 April 2012, reports Bloomberg.
Garage generated 2.4 million dollars in revenues in April this year, 28 percent less than originally calculated according to a May 25 economic report to the bondholders.
Donald Cutler, General Council for Davidson Kempner, declined to comment on the transaction to HedgeFund.Net. A spokesman for the monarch options did not return a call for comment.
Go to the Bloomberg article
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