Palm Bay Academy Defaults on $14.8M Debt, Senior Bondholders Settle at 77 Cents as Subordinates Wiped Out
Palm Bay, FL – Palm Bay Academy, a public charter school in Palm Bay, has defaulted on its $14.8 million bond debt, leading to a restructuring settlement and the sale of its facilities’ mortgage. This represents the second time in 13 years the school has defaulted on its municipal bonds, highlighting the ongoing financial struggles of the K-8 Montessori program.
Under the terms of the settlement, UMB Bank, N.A., acting as successor trustee, negotiated a deal to sell the Trust Estate’s interest in the school facilities for $4.93 million. This cash will be distributed to creditors on July 10…
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