Chapter 11 bankruptcy allows a business to continue operating throughout the bankruptcy process. With this type of bankruptcy filing, the debtor usually proposes a reorganization plan intended to both keep the business alive and pay its creditors over a period of time. Recently, the owner of the Menominee Nation Arena in Oshkosh, Wisconsin, filed for Chapter 11 bankruptcy protection. The owner of the arena, Fox Valley Pro Basketball, Inc. filed for bankruptcy on August 19th in the Eastern District of Wisconsin Bankruptcy Court.
Fox Valley Pro Basketball Files for Chapter 11 Bankruptcy
Menominee Nation Arena is home to NBA G League Wisconsin Herd. This basketball team is affiliated with the Milwaukee Bucks. Fox Valley Pro Basketball, Inc., owner of the arena, was more than a year behind on the mortgage payment for the Menominee Nation Arena. Just before the company was due in Winnebago County Court regarding the mortgage non-payment, it filed for bankruptcy. Bayland Buildings, a general contractor, had filed a Foreclosure of Mortgage complaint against Fox Valley Pro Basketball and claimed that the company owed $13 million on the mortgage. Bayland Buildings stated that no regularly scheduled mortgage payment had been received by Fox Valley Pro Basketball since May of 2018.
In the bankruptcy filing, it is estimated that Fox Valley Pro Basketball has assets totaling between $10 million and $50 million. The filing further states that the company may have close to 200 creditors and estimated liabilities of $10 to $50 million. The bankruptcy court, during a hearing on August 23rd, approved a lending proposal for Fox Valley Pro Basketball while the company makes an effort to successfully reorganize the business. In order to meet cash flow needs during the Chapter 11 bankruptcy proceedings, Windward Wealth Strategies, Inc., owned by a group that has a controlling interest in Fox Valley Pro Basketball, has agreed to lend Fox Valley Pro Basketball up to $200,000. Greg Pierce, President of Fox Valley Pro Basketball has also stated that they are putting money of their own on the line to make the bankruptcy and reorganization process successful. With Chapter 7 bankruptcy, a business is usually looking to bring operations to a close. Chapter 11 bankruptcy allows a business to remain open during the bankruptcy process and attempt to reorganize the company in order to survive bankruptcy and continue operations. Menominee Nation Arena does plan on continuing operations throughout the reorganization. Jason Fields, General Manager of the arena, has made it clear that the arena remains committed to supporting the greater Oshkosh community.
Wisconsin Bankruptcy Legal Counsel
The type of bankruptcy you file is very important. The knowledgeable bankruptcy attorneys at Hanson & Payne, LLC can counsel you on your options and provide trusted legal counsel throughout the bankruptcy process. We are here to provide continued support to our clients and always watch out for their best interests. Contact us today.