Muni Bonds Sold for Upscale Georgia Hotel See Event of Default

Muni bonds sold to support a 245-room hotel in Georgia fell into distress after the borrower failed to make a required deposit to a debt service fund, according to an April regulatory filing by the trustee, Wilmington Trust.

• McLemore Resort Manager LLC, which is the asset manager that is responsible for the development and operation of the hotel, has about $179 million of debt outstanding, according to data compiled by Bloomberg
• Proceeds of the bonds were used to build the high-end hotel and conference center on Lookout Mountain near the state border with Alabama and Tennessee, according to bond ...