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| Arena owner Fox Valley Pro Basketball missed a property tax payment, jeopardizing its liquor license. |
The owner of the Menominee Nation Arena has maintained, for now, its control over its financial future, but the bankruptcy judge hearing its case has signaled that time is running out.
At a hearing last week, Judge Brett H. Ludwig rejected an effort by Bayland Buildings Inc., the facility’s largest creditor, to let it propose a new financial reorganization plan for Fox Valley Pro Basketball Inc., the arena’s developer.
But even as the judge held off Bayland, the court learned that Fox Valley has missed a tax payment to the city, which could jeopardize the public incentive payments that are critical to the arena’s financial future.
The COVID-19 health emergency “warrants a two-month extension” for Fox Valley to obtain court approval of its reorganization plan, Ludwig said.
But he warned that the case needs to be wrapped up soon. “Future requests for extensions, future requests for delays, are going to be looked at skeptically, let’s just say that,” he said.
Bayland, the contractor that built the arena and took back a mortgage when Fox Valley could not pay its bills, does not believe that the developer can put together a successful business plan and satisfy its debts.
Attorney Michele M. McKinnon, representing Bayland, said the plan that Fox Valley has proposed would unfairly benefit investors and insiders and and is designed to help them avoid other litigation.
The fact of the missed March tax payment shows the extent of the arena’s cash flow problems, she said.
Jerome R. Kerkman, an attorney for the arena, said that Bayland is trying to muscle aside small creditors and that his client is hoping to work out an “accommodation” with the city.
But Oshkosh officials said it is too soon to say whether that will occur. “We’ll wait until we have a new council seated to discuss our options,” said City Manager Mark Rohloff. Two new members of the Common Council were elected this week and will take office later this month.
Rohloff noted that Fox Valley also missed a tax payment last year. But if the company wants to keep its liquor license, it will have to pay up by June 30, he said.
At a hearing last week, Judge Brett H. Ludwig rejected an effort by Bayland Buildings Inc., the facility’s largest creditor, to let it propose a new financial reorganization plan for Fox Valley Pro Basketball Inc., the arena’s developer.
But even as the judge held off Bayland, the court learned that Fox Valley has missed a tax payment to the city, which could jeopardize the public incentive payments that are critical to the arena’s financial future.
The COVID-19 health emergency “warrants a two-month extension” for Fox Valley to obtain court approval of its reorganization plan, Ludwig said.
But he warned that the case needs to be wrapped up soon. “Future requests for extensions, future requests for delays, are going to be looked at skeptically, let’s just say that,” he said.
Bayland, the contractor that built the arena and took back a mortgage when Fox Valley could not pay its bills, does not believe that the developer can put together a successful business plan and satisfy its debts.
Attorney Michele M. McKinnon, representing Bayland, said the plan that Fox Valley has proposed would unfairly benefit investors and insiders and and is designed to help them avoid other litigation.
The fact of the missed March tax payment shows the extent of the arena’s cash flow problems, she said.
Jerome R. Kerkman, an attorney for the arena, said that Bayland is trying to muscle aside small creditors and that his client is hoping to work out an “accommodation” with the city.
But Oshkosh officials said it is too soon to say whether that will occur. “We’ll wait until we have a new council seated to discuss our options,” said City Manager Mark Rohloff. Two new members of the Common Council were elected this week and will take office later this month.
Rohloff noted that Fox Valley also missed a tax payment last year. But if the company wants to keep its liquor license, it will have to pay up by June 30, he said.
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