McLemore cannot make the necessary deposit of the debt service. Say civil servants

The borrower was unable to receive a necessary deposit for a debt service fund for municipal bonds to support the Cloudland Hotel with 245 rooms on the Lookout Mountain, reported the Wilmigton Trust in a securities and stock market registration.

McLemore Resort Manager LLC has an outstanding debt of around 179 million US dollars, reported Bloomberglaw.com.

McLemore officers said “While there was a technical failure – limited to the financing of the Cloudland Hotel bond and in connection with a planned reserve account deposit – there are debt reserves, and bond expenses are not affected.

“This situation was expected, and months ago the trustee and the bond loafers were made available.

“The Cloudland Hotel is now for its original performance projections, and we are still confident of its long-term success.”

The upscale hotel was opened last year and is part of the Hilton Curio Collection. A second golf course is built on the site.

The next interest payment is due in June.