Another bankruptcy involving bonds issued through the Arizona Industrial Development Authority was filed Tuesday along with a pre-packaged exit plan that would result in bondholder ownership of a reorganized company.

Restoration Forest Products Group, which brought the Chapter 11 case in U.S. Bankruptcy Court in Delaware, sold $112.8 million of taxable Series A senior and $86.8 million of taxable Series B subordinate sustainability-linked revenue bonds through the authority in 2022 under its former name NewLife Forest Restoration.

The filing comes as Legacy Cares’ 2023 bankruptcy case, which involved $284 million of defaulted debt sold through AZIDA in 2020 and 2021 for a participant sports venue in Mesa, , according to a disclosure on the Municipal Securities Rulemaking Board’s EMMA website. By September, the company defaulted on the bonds and on a June bridge loan credit agreement with Invesco, whose affiliates own the Series A bonds, the court filing said.

Under a proposed plan of reorganization, recoveries for Series A bondholders would be 20% to 35% and an unspecified percentage for Series B bonds, which were bought by affiliates of Lateral Investment Management. If the plan receives court approval, Invesco would become the majority owner of the reorganized company in partnership with Lateral.

Updated with comment from AZIDA’s executive director.