Tower has implemented as a principal the workout and recovery of over $300 million in defaulted real-estate-secured municipal bonds and debt in California, New York, Georgia and Pennsylvania.

In most cases, the bonds were initially issued to make infrastructure improvements (roads, water, sewers, storm-drain) on public land or were used to fund public facilities. The muni-bonds are secured by a super-priority lien on the underlying development.  The bonds were in default because the landowners have not paid their special tax payments, which is the sole source of repayment of principal and interest due to bondholders.

Tower’s strategy is to purchase the bonds at a discount and convert them into fully performing receivables and to take ownership of the land at foreclosure sales or direct purchase at deep discount.  Tower completes the entitlement and infrastructure improvements, gets the bonds refunded and then sells the refunding bonds at par and the improved lots.

Tower purchases defaulted municipal bonds in large and small denominations from institutional owners or in the secondary market from licensed securities dealers. After acquisition of the bonds, Tower works closely with the public agencies to implement its work-out strategy. Tower's work-out strategies have helped to bring partially-developed residential and commercial subdivisions to completion, while curing bond defaults.

Work-out strategies include taking title to the land (which may require pursuing all remedies in bankruptcy) and restructuring the debt.

In the case of defaulted residential subdivisions, upon completion of a workout, the subdivision becomes financially solvent and gets built out by merchant home builders, often in partnership with Tower.

1) Antelope Valley East Kern Water Agency, Acton, CA
2) Allegany County, Cuba, NY
3) City of Big Bear Lake, CA
4) Calaveras County, Valley Springs, CA
5) Central San Joaquin Financing Authority, Mendota, CA
6) Delaware County, Boothwyn, PA
7) City of Dos Palos, CA
8) City of Chowchilla, CA
9) City of Hesperia, CA
10) City of Ione, CA
11) Monroe County, Rochester, NY
12) City of Oroville, CA
13) City of Palmdale, CA
14) City of Pittsburg, CA
15) City of Placerville, CA
16) City of Redding, CA
17) City of San Jacinto, CA
18) City of Savannah, GA
19) City of Selma, CA
20) City of Sonora, CA
21) Sierra Nevada PFA, Shaver Lake, CA
22) City of Tehachapi, CA
23) Val Verde Unified School District, Moreno Valley, CA
24) City of Wheatland, CA
25) City of Yuba City, CA
26) Manhattan, City of New York City, NY