Bell Bank Park Venue

Carlsbad7 said:
www.azcentral.com

Judge grants Legacy Park's request to a 24-hour extension to present a sale bid

Lawyers for Legacy Park asked a bankruptcy court judge for a one-day extension to finish negotiations with a potential buyer. Here's what we know.
www.azcentral.com
Click to expand...

hoyladsaodsa.0.gif
 
VanMan said:
hoyladsaodsa.0.gif
Click to expand...
The only way I can see this not ending up screwing the bond holders is if local government steps in + buys it. But this only shifts the scam from bond holders to taxpayers.

If anything close to Pacific Proving LLC (owned by William Levine and Arturo Moreno owner of the land Bell Bank was built on + also Arturo is the owner of LA Angels) ends up the mystery buyer. Bond holder lawsuits will go crazy.
 
I do wonder as to the actual viability of the venue. They received $9M in June to keep it running. I assume this is on top of the ongoing money they receive from the events and attendees since. They are now saying they will need more money from 10/31 if the sale goes through to keep running. So basically, they've lost $9M in 5 months, so its running at a $21.6M annual loss atm on those numbers alone - o_O
 
whatithink said:
I do wonder as to the actual viability of the venue. They received $9M in June to keep it running. I assume this is on top of the ongoing money they receive from the events and attendees since. They are now saying they will need more money from 10/31 if the sale goes through to keep running. So basically, they've lost $9M in 5 months, so its running at a $21.6M annual loss atm on those numbers alone - o_O
Click to expand...

Couple of things to account for:

1) They went into BK and the DIP financing on May 1
2) While some of the facilities are indoor, most are outdoor.
3) When it's 100+ out there, field rental revenues drop, energy costs go up to service the indoor facilities.
4) Means that their Q3 bottom line will be at it's worst, meaning the would burn cash at the fastest rate.
5) Debt service is the biggest cash outlay. That debt will either be restructured or go away entirely through the BK process in order to make it viable.

Carlsbad7 said:
The only way I can see this not ending up screwing the bond holders is if local government steps in + buys it. But this only shifts the scam from bond holders to taxpayers.

If anything close to Pacific Proving LLC (owned by William Levine and Arturo Moreno owner of the land Bell Bank was built on + also Arturo is the owner of LA Angels) ends up the mystery buyer. Bond holder lawsuits will go crazy.
Click to expand...



6) On Nov 1, Pacific Proving can declare default on the lease and there none of it really matters any more. Hard assets that aren't bolted to the ground will get sold. If I remember correctly, roughly 230MM is in leasehold improvements and there was something like 20-30MM in equipment.


There's no reason politically for the City or State to step in.
 
VanMan said:
Couple of things to account for:

1) They went into BK and the DIP financing on May 1
2) While some of the facilities are indoor, most are outdoor.
3) When it's 100+ out there, field rental revenues drop, energy costs go up to service the indoor facilities.
4) Means that their Q3 bottom line will be at it's worst, meaning the would burn cash at the fastest rate.
5) Debt service is the biggest cash outlay. That debt will either be restructured or go away entirely through the BK process in order to make it viable.





6) On Nov 1, Pacific Proving can declare default on the lease and there none of it really matters any more. Hard assets that aren't bolted to the ground will get sold. If I remember correctly, roughly 230MM is in leasehold improvements and there was something like 20-30MM in equipment.


There's no reason politically for the City or State to step in.
Click to expand...
I get the seasonality, but if they have burned the money and need more operating cash, there's no uplift in sight. Do they still have to meet debt servicing while in bankruptcy, I would have thought that would get frozen, but I have no expertise in that area?
 
whatithink said:
I get the seasonality, but if they have burned the money and need more operating cash, there's no uplift in sight. Do they still have to meet debt servicing while in bankruptcy, I would have thought that would get frozen, but I have no expertise in that area?
Click to expand...

Any pre-petition obligations (missed payments) are put on hold. Anything post petition should be kept current. This should mean that debt service (bond payments) continued.

The point of Ch 11 BK is to restructure the liabilities to make the entity viable. There are a number of actions the court could take to make it so, but lowering or discharging debt altogether are within scope.

From the BK docs, it looks like they grossed $27MM in 2022. There are actually a series of bonds with varying interest rates and maturities. Here's a few (from one of the claims):

1697752346478.png


Just those bonds alone (there's like another 60MM floating around) need $25MM annually to service the debt. That doesn't leave a whole lot to cover ops. Assuming they continued to service over the past 5-6 months, that would have been 12.5 - 15MM. Restructure the debt and maybe it works. If it goes to liquidation and Pacific Proving picks up the pieces, they can certainly make it work with a legit management team. But anyway you slice it, all of the pre-petition folks are taking haircuts.
 
Just listened to the audio from the continued hearing last week. Key points:

Do or die hearing happens today at 1:30pm.
Leading bidder is offering a total of $18MM in cash.
  • $12MM to mechanics lienholders (plus another $5MM from Pacific Proving)
  • $4MM goes to cover admin claimes
  • $2MM cash to bondholders, plus a 10% equity stake in the new entity.
Pacific Proving will stake another $750k to fund operations through Nov while the deal gets completed. Has agreed to renegotiate the lease and chip in $5MM towards mechanic's lienholers.

It will be interesting to see what comes out of today's hearing, whether or not they were able to settle with remaining holdouts.
 
soccermom74 said:
Another 1-day continuance. 1:00 today.
Click to expand...

Interesting. So much for do or die by yesterday. The longer this runs, the lower the likelihood the deal gets done.

I wish I could see the minutes/transcripts or hear the audio, but PACER isn't functioning properly (at least for me) today.
 
Miracles do happen!

Can't wait to see all of the particulars.

Also interested to see who they bring on to manage... Can't imagine the keep the other kid around for very long.
 
VanMan said:
Miracles do happen!

Can't wait to see all of the particulars.

Also interested to see who they bring on to manage... Can't imagine the keep the other kid around for very long.
Click to expand...
Sounds like Mechanics Liens have the highest level of priority because these are what was holding up the BK sale.

It also sounds like bond holders don't matter.

The BK sale is 25.5 million. However legacy cares burned through around 280 million in Bond $$$ constructing the facilities.

It feels like a scam.
 
Carlsbad7 said:
Sounds like Mechanics Liens have the highest level of priority because these are what was holding up the BK sale.

It also sounds like bond holders don't matter.

The BK sale is 25.5 million. However legacy cares burned through around 280 million in Bond $$$ constructing the facilities.

It feels like a scam.
Click to expand...
Definitely a scam. 18M to lien holders. Only 2.2M to bond holders.
 
A big scam! I thought $150M was going to be too high, but that $100M would be a steal. Now it comes in at $25.5 with the property owner (good ol'Artie) fronting $6M of that. I'm kicking myself that I didn't have $30M of capital to pull together. Without owning the land, this is an unreal price, plus clearing out all the debts. All the Miller's should be on the lookout for incoming lawsuits...
 
You must log in or register to reply here.
Back
Top