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 -
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.
