by Michael Lowrey
A town is on the verge of bankruptcy after its decision to help finance a movie studio didn’t workout. As Bloomberg reports:
Investors chasing the biggest rally in high-yield municipal debt since 2008 are drawing the line at the bonds of Allen Park, Michigan, whose ill-fated plan to build a movie studio has left it facing possible bankruptcy.
The Detroit suburb of 28,000 sold $31 million of bonds about three years ago for the venture, the brainchild of California film executive Jimmy Lifton. Instead of his Unity Studios, the city is stuck with partially leased buildings that aren’t meeting costs, and $2.6 million in annual bond payments from a $16 million general budget.