When last we checked in on the troubled New York Yankees parking garages, they were on the verge of bankruptcy, and being considered for partial demolition. And now?
Parking garages serving New York Yankees baseball fans won’t have sufficient reserves next year to pay investors holding about $240 million of tax-exempt debt, according to a security filing.
Bloomberg News says that $15 million in bond payments will be due next year, and the Bronx Parking Development Co. has only about $8.5 million in cash on hand. That raises the possibility of the company filing for bankruptcy by the time of its next scheduled bond payment on April 1, unless the bondholders agree to take less money to avoid being left completely holding the bag.
Of course, we’ve heard this before, and they’ve always scraped up the cash in time. But eventually, the reserve fund is going to go dry, and the bondholders are going to have to take less money one way or another. The city, meanwhile, is likely already out its $43 million in expected rent payments, since the garages don’t have to pay so long as they’re losing money. Gosh, who could possibly have seen this coming?