Politics & Government
City to Default on Next Redevelopment Bond Payment
The bond's trustee and insurer is now taking Hercules to court.
Hercules will not make a scheduled Feb. 1 redevelopment bond interest payment, and bond insurer Ambac is taking the city to court because of it, City Manager Steve Duran said in an email Monday night.
“The agency and the city attempted to negotiate a settlement with Ambac, but Ambac has decided to file suit against the agency and city instead,” Duran said.
Last week, Duran said the technical default leaves the agency on the hook and does not indicate that city is heading for bankruptcy.
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A hearing is scheduled for Tuesday, Jan. 31 at 1:30 p.m. at the Contra Costa Superior Court in Martinez.
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