Mon 05/01/2023 14:08 PM
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Relevant Document:
Notice (EMMA) (May 1)

Legacy Cares is preparing to file for chapter 11 in the U.S. Bankruptcy Court for the District of Arizona in order "to reorganize the Borrower’s financial affairs, which may include the sale of the Borrower’s interests in the Park pursuant to a plan of reorganization," according to a notice posted to EMMA today by the company. The company says that it is taking the action upon advice of counsel. The notice also states that representatives of the borrower "have been working in good faith with their manager, Elite, to continue to operate" the 320-acre multi-sports park facility located in Mesa, Ariz.

The company previously disclosed that it had retained Miller Buckfire, or MB, as its investment banker prior to filing for chapter 11 in order to " investigate options for Legacy Park, including a potential sale of Legacy Park." The notice states that MB, in acting in accordance with the applicable agreements, "has begun preliminary marketing of the Borrower’s interest in Legacy Park." The notice points out that "[n]o assurance can be given if or when the Borrower’s interest in Legacy Park will sell or at what price."

Further, says the notice, as part of the chapter 11 proceedings, Legacy Cares anticipates filing a motion seeking authority to enter into a priming superpriority debtor-in-possession credit agreement with the Trustee "to cover approved operational expenses of the Borrower, the Chapter 11 Case professional fees and other costs of the reorganization." The notice states that the DIP financing, if consummated, "will be an additional financial obligation of the Borrower and may be funded from moneys held by the Trustee in the Debt Service Reserve Fund established under the Indenture." 
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