For the third time, Branson Airport operators are getting a reprieve on debt service payments to investors who funded $113 million in bonds to construct the private airfield in 2007 and 2008.
According to BondBuyer.com, bondholders have agreed to amend a forbearance agreement to give the struggling airport more time to pick up operations.
Branson Airport LLC's latest forbearance agreement expired June 30, and an amended agreement sought by trustee UMB Bank moves the terms another 12 months. BondBuyer.com reports that violations would allow bondholders to terminate the new forbearance agreement.
The airport first defaulted on the tax-exempt bonds in
early 2011 and then again a year later on terms of a forbearance that could have resulted in bondholder enforcement actions, according to
Springfield Business Journal coverage.
Some positive passenger momentum hit a setback when Southwest Airlines pulled out of Branson Airport in June. Passenger activity peaked this year with more than 14,000 in May but fell to 6,700 in June and, in July, without Southwest, slid to about 5,300. It's projecting 73,600 passengers on the year, far below original estimates to cover debt repayment.
Prior to posting net operating income of $3.9 million in 2013, Branson Airport lost $21 million combined in its first four years of operations, according to SBJ coverage.
Bondholders can demand immediate repayment of all principal and interest, terminate the airport's operating lease and pursue legal action to capture revenue in the event of a default. According to BondBuyer.com, they also could move to foreclose on the property.
Read more from
BondBuyer.com.[[In-content Ad]]
