Florida Dirt Bond Holders Put at Line’s End in Bankruptcy Ruling
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Holders of a Florida development’s tax-exempt bonds are fighting a judge’s order that may make it harder for owners of at least $2.9 billion of defaulted debt to get paid by excluding them from a bankruptcy settlement.
Owners of more than $100 million of so-called dirt bonds sold by two Fiddler’s Creek Community Development Districts heard in August that most of their debt payments will begin after those to other creditors of Fiddler’s Creek LLC, the bankrupt builder of a 4,000-acre (1,600-hectare) community in Naples, on Florida’s west coast.