LOS ANGELES - Owners of the Days Inn hotel project in Oakland, Calif., have made a past-due interest payment on a 1982 issue of industrial development revenue bonds, the bond trustee. Bank of America, said yesterday.
"Owners of the hotel project, which is the revenue source for repayment of the bonds, have now paid in full the June 1, 1993, installment of interest," the bank said in a disclosure notice.
The trustee said that bondholders "may re-submit their June 1, 1993, coupons for payment" since the paid-up interest installment is now available for distribution.
Owners of the hotel project made three partial payments in June and July to cover the past-due installment, which totaled $241,369, according to Bank of America.
In addition, the project owners paid interest on the outstanding balance of the past-due installment at the late payment rate of 13.25% specified in the indenture. Those moneys "will be distributed concurrently with or shortly after the holder's June interest distribution," the trustee said.
The project owners also paid past-due trustee's fees and expenses totaling $4,750.
However, "the owners are still in breach of the financing documents' requirement that they furnish the trustee with audited financial reports," Bank of America said. "Accordingly, the trustee has not rescinded its notice of default" dated July 7, 1993.
In the July notice, Bank of America said it had been informed the project owners are seeking to refinance the project loan and redeem all the bonds outstanding. At the time, however, the trustee also noted it "can give no assurances that the project owners will be successful in this refinancing effort."
Slightly less than $4 million of the original $5.2 million bond issue remains outstanding.
Most of the bonds are held in bearer form. Bank of America said yesterday it is still seeking the identity of certain bondholders so it can notify them directly about recent developments.