Legacy Cares’ bid procedures for assets draw U.S. trustee objection

By Sarah Lizee

Olympia, Wash., Aug. 25 – Legacy Cares, Inc.’s proposed bid procedures for its assets drew an objection from U.S. trustee Ilene J. Lashinsky, according to documents filed Thursday with the U.S. Bankruptcy Court for the District of Arizona.

Lashinsky said the motion isn’t simply one to approve bid procedures related to what would be a future, separately filed sale motion that would be heard separately and subject to its own objection period.

“This debtor appears to be seeking the court to approve a prospective sale, of unidentified assets, to an unknown bidder, for an unknown price, with bid protections that are not tied to an existing sale agreement or purchase price that establishes reasonableness,” the U.S. trustee said in her objection.

Lashinsky also said the debtor wants to establish assumption and assignment provisions on a prospective basis applicable to third party contracts that are between Legacy Sports, LLC and the vendor/sponsor, but the court has yet to determine if this is even possible.

“In other words, the debtor is putting the cart before the horse,” the U.S. trustee said.

“Such approval would eliminate proper notice to the parties to the case and circumvent their right to be heard regarding the sale of substantially all of the debtor’s assets.”

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 company filed bankruptcy on May 1 under Chapter 11 case number 23-02832.

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