Syracuse, N.Y. — Holders of $285 million in bonds that helped to finance an expansion of Destiny USA are bringing in a new trustee as the troubled mall’s owner seeks a reduction in its debt load.
Trimont Real Estate Capital, the bondholders’ representative, notified the Syracuse Industrial Development Agency last week that it plans to remove the current bond trustee, Buffalo-based M&T Bank, and asked the agency to approve a new one, UMB Bank. The agency voted 4-0 to approve UMB’s appointment today.
Judith DeLaney, executive director of the agency, said Trimont did not give a reason for the move. However, she said she assumes it is related to mall owner Pyramid Management Group’s efforts to negotiate a reduction of its $715 million in debt on the mall.
Trimont did not respond to a request for comment. Kaele Palmer, a spokesperson for UMB, said the bank had no immediate comment on its appointment as trustee.
Bond trustees are appointed by bond issuers — in this case, the Syracuse Industrial Development Agency — to, among other things, primarily to make sure principal and interest is paid to the holders of the bonds on a timely basis. M&T has served as trustee since the agency first issued the bonds in 2007 to assist Pyramid with financing a large addition to the Syracuse mall, which was then named the Carousel Center.
Kansas City-based UMB Bank offers many services to businesses, including serving as a bond trustee. But it also has what it calls a “distressed debt…