July 17 (Bloomberg) -- The Internal Revenue Service is reviewing $237.6 million of tax-exempt debt used to finance parking garages at New York’s Yankee Stadium, according to a securities filing.
It’s the latest hurdle for the project after Bronx Parking Development Co. in April missed a payment to bondholders, defaulting on the debt. A month earlier, the company hired the law firm Willkie Farr & Gallagher as bankruptcy counsel.
The IRS is examining the revenue bonds “to determine compliance with the federal tax requirements,” according to the filing today.
Bronx Parking issued tax-exempt bonds in 2007 through New York City’s Industrial Development Agency to build three garages and renovate two others. The structures haven’t generated enough revenue as more fans take public transportation to the Major League Baseball stadium. It costs $35 to park at the facility.
Holders of the debt in May said they wouldn’t sue Bronx Parking to enforce their claims on revenue or seek an acceleration of payments, which prevented an immediate bankruptcy filing.
The next scheduled payment is $8.1 million on Oct. 1. Steven Polivy, an attorney at Akerman Senterfitt LLP who represents Bronx Parking, and Edward Moran, its financial adviser, didn’t immediately respond to e-mails requesting comment on the filing.
The IRS is prohibited from commenting by law, Bruce Friedland, a spokesman for the agency, said by telephone.
Bonds due October 2037 traded as low as 44.19 cents on the dollar July 2, according to data compiled by Bloomberg.
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