Indiana Plastic-to-Fuel Plant Defaults on Muni Green Bonds (1)

An Indiana plant that converts plastics into fuel missed a payment on about $170 million of green bonds, the latest in a string of recycling projects financed by municipal debt to default.

Brightmark Plastics Renewal Indiana LLC, formerly known as RES Polyflow Indiana LLC, defaulted on a March 1 payment on bonds issued through the Indiana Finance Authority, according to a securities filing. UMB Bank NA, the trustee for the bonds, declared the principal and accrued interest on the debt due and payable immediately.

Located in Ashley, Indiana, the plant — which converts everything from ...