Legacy Cares files Chapter 11 bankruptcy with $366.72 million in debt

By Sarah Lizee

Olympia, Wash., May 2 – Legacy Cares, Inc. filed Chapter 11 bankruptcy on Monday in the U.S. Bankruptcy Court for the District of Arizona.

Legacy Cares is a non-profit corporation that owns Legacy Park, formerly known as Bell Bank Park, a 320-acre sports and entertainment complex in Mesa, Ariz.

The debtor financed construction of the park through loans funded by the proceeds of revenue bonds issued by the Arizona Industrial Development Authority in 2020 and 2021. UMB Bank, NA is trustee for the holders of these bonds and the debtor’s primary secured creditor.

Legacy Cares owes UMB about $301 million of principal and interest under various loan and security documents.

The debtor doesn’t own the real estate on which the park sits but occupies the park premises under the terms of a 40-year ground lease with the lessor Pacific Proving, LLC.

The company said that during construction of the park, there were challenges due to supply chain delays, the Covid-19 pandemic and labor shortages. This resulted in a multi-month delay before the park was fully operational, resulting in material lost revenue during winter months.

Legacy Cares is seeking court approval of a $9 million debtor-in-possession facility with UMB as trustee.

Interest on the facility is 12% per annum. Default interest would jump up to 14%.

There is a fee on 2% of the total borrowing cap.

The facility is set to mature on Sept. 30, subject to earlier maturity following certain events.

The company is seeking interim access to $1.6 million of the facility and is also seeking approval to access cash collateral.

In its petition, the company listed 200 to 999 creditors, $242.33 million in assets and $366.72 million in liabilities.

Its largest unsecured creditors are FieldTurf USA, Inc., based in Calhoun, Ga., with a $4.97 million construction payable claim, Icing Investment Holdings, LLC, based in Phoenix, with a $2.44 million arbitration award and accrued interest claim, and Spectra Food Services & Hospitality, based in Philadelphia, with a $1.38 million trade payable claim.

Legacy Cares is based in Mesa, Ariz. The Chapter 11 case number is 23-02832.

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