Economics
Biggest Junk Sale in Limbo After Deaths in U.S. War: Muni Credit
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The largest-ever U.S. municipal junk bond sale remains in limbo after Indiana learned that a Pakistani company backing a fertilizer plant financed by the biggest borrowing in state history is linked to explosives causing the most U.S. casualties in Afghanistan.
The Indiana Finance Authority in December sold about $1.3 billion of tax-free notes for the initial phase of a facility near the Illinois border for a unit of Lahore, Pakistan-based Fatima Group. The proceeds are in escrow until July 1, after which they will convert into bonds if the plan proceeds.