AAF Parent Says There Is No Money To Pay Creditors
There is no money to pay AAF creditors and they should not file claims, league parent company Legendary Field Exhibitions disclosed in a filing in bankruptcy court today. “No property appears to be available to pay creditors,” the filing said. “Therefore, please do not file a proof of claim now. If it later appears that assets are available to pay creditors, the clerk will send you another notice telling you that you may file a proof of claim and stating the deadline.” When the AAF filed on April 17, it listed $48.4M of debt and $11.4M of assets. However, of the thousands of creditors, three -- MGM, Aramark and Silicon Valley Bank -- have secured claims totaling $9.6M, according to the Chapter 7 bankruptcy petition. Assets include used equipment and deposits made at other companies. The Chapter 7 filing lists cash at $536,160.68.
“The quoted language indicates, based on currently available information, the Trustee projects that there will be no funds available for distribution to creditors and therefore creditors should not (bother to) file proofs of claim at this time,” bankruptcy attorney Paul Rubin, who is not connected to the case, wrote in an email. The trustee is appointed by the court to oversee the case. “This is not necessarily the final word,” Rubin added. “If the Trustee obtains new or different information that leads him to think there may be funds available for distribution, he can then ask the Clerk of the Court to fix a bar date establishing the last date for creditors to file claims and to send notices to the creditors in the case.”
Seven creditors to date have filed claims totaling $1.24M. The court has scheduled a May 23 creditors meeting at the federal bankruptcy courthouse in San Antonio. It also had scheduled July 26 as the final date for creditors to file, though that deadline now appears moot.