Representative Matters

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Client: Economic Development Agency
In re Petition for Instructions to Construe Basic Resolution 876 of the Port Authority of the City of Saint Paul - Dispute between issuer of industrial development revenue bonds and holders of those bonds.

The client is an agency that promotes economic opportunities by issuing municipal bonds to fund industrial projects. It sought court approval of a proposal to liquidate one of its development programs where approximately 140 series of bonds had been issued, and each bond series was cross-collateralized with all others. After initial success in the trial court, objecting bondholders secured a reversal in the Minnesota Supreme Court. Those bondholders then sued the agency for breach of trust and misappropriation of funds. The case eventually settled with the appointment of a trustee to oversee management of the assets pledged to repayment of the bonds.