Monday, September 16, 2019

Oshkosh arena owner sitting on $9 million hole

The arena grossed $3.1 million in 2018, according to new legal documents.

By Miles Maguire

The Menominee Nation Arena is sitting on a $9 million hole, the difference between its assets and its liabilities, according to legal papers filed Monday. 

Also Monday the company that owns the Wisconsin Herd said that it has not received a single payment from the arena and is now owed $560,510.

In a 
77-page filing, Fox Valley Pro Basketball Inc., the developer and owner of the facility, said its assets come to $16.3 million while its liabilities are $25.5 million.

The new filing, required as part of the Chapter 11 bankruptcy process, provides the most detailed accounting to date of the financial condition of Fox Valley. Here are some highlights:

  • The company says the arena is worth just $10.3 million based on a recent appraisal. The cost of construction was more than twice that amount, $21.5 million. 

  • Fox Valley is apparently thinking about pursuing legal action against local investor Eric Hoopman for disclosure of confidential information and lists this “cause of action” as an asset. In a suit filed last week accusing Fox Valley of misrepresentation and securities fraud, Hoopman included information about Fox Valley’s hopes to build a casino and about financial projections that were shared with investors.

  • Fox Valley says its largest secured creditor is Bayland Buildings Inc. with a recognized claim of $12.7 million.

  • Three governmental entities, including the IRS and two state agencies, have unsecured claims of $127,559.

  • The number of unsecured claims by private entities is now at 152, with a total value of $11.4 million.

  • The arena grossed $3.1 million in 2018, up from $284,000 in 2017.

Future Bucks LLC, the entity that owns the Herd, filed an objection to some of the terms of the proposed interim financing for the arena.

In its filing Future Bucks disclosed the terms of its agreement with the arena, including 100% of gross ticket revenues, 20% of gross concessions and 50% of net parking revenues. Future Bucks was also due 20% to 30% of revenues from advertising displayed at the arena.

No comments:

Post a Comment