Information for Creditors of Legacy Cares, Inc.
Case Number 23-02832 in the United States Bankruptcy Court for the District of Arizona
LEGACY CARES, INC FILES FOR BACNKRUPTCY
The 320 acre Mesa sports complex formerly known as Bell Bank Park suffered blows when park sponsor Bell Bank terminated a 10-year naming rights deal. Legacy Cares is a nonprofit formed in 2018 that borrowed $284 million through tax incentivized municipal bonds to fund construction of the park. The complex opened in January 2022 and the Arizona Industrial Development Authority acted as a pass-through entity for the funding. Legacy Cares recently cut ties with for profit Legacy Sports USA who was operating the park under a management agreement. Also gone is Oak View Group (OVG), a national sports and entertainment firm had been hired by Legacy Sports to manage the Park.
Legacy Cares entered into a new agreement with Elite Sports Group LLC.
ISSUES WITH CREDITORS LED,TO BANKRUPTCY
In October 2022, Legacy Cares reported that the park was not generating enough revenue to cover its loan payments. Legacy Cares tried to refinance its debt with $400 million in new bonds. The property owner landlord Pacific Proving LLC and the bondholders agreed to forbear on calling a default while the refinance was being arranged with Loop Capital. In February 2022, the bondholders rejected their terms of a refinancing package. Other creditors moved toward foreclosure and Legacy Cares lost in an arbitration with Icing Investment Holdings, LLC and owes on an arbitration award of about $2.4 million.
WHAT CAN CREDITORS DO?
Unsecured creditors must be proactive in situations where a debtor designates them as disputed. If a creditor is listed as disputed and takes no action, it is at risk of not being paid what it is rightfully owed in the bankruptcy case. Asserting a claim is easy and can lead to a big change in outcome for a creditor in a bankruptcy case.
Additionally, unsecured creditors may be able to work together to raise the potential of repayment for all creditors. An official unsecured creditors’ committee is sometimes formed in cases such as Legacy Cares, and the committee can hire lawyers to be paid for by Legacy Cares. A committee can be an effective advocate for repayment of unsecured creditors who can’t always afford to vigorously assert their own rights. If you have any questions about this case or committees in general, please feel free to reach out to PRLT.
PRLT does not represent Legacy Cares Inc. The content on this page is provided for informational purposes only. Nothing on this page or this website creates an attorney/client relationship between you and PRLT. Nothing on this page is legal advice. If you have any questions about the Legacy Cares bankruptcy case or anything discussed on this page, please contact us.