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NESV Ice, LLC and several affiliates, which own various parcels of real property underlying the New England Sports Village
, a planned athletic, entertainment and hospitality complex located on 138.3 acres in Attleboro, Mass., filed for chapter 11 protection today in the Bankruptcy Court for the District of Massachusetts. The company reports $1 million to $10 million in assets and $10 million to $50 million in liabilities. The debtors are represented by Downes McMahon in Boston. The jointly administered
case number is 21-11226.
According to the joint administration motion, the debtors’ bankruptcy filings were precipitated primarily by a foreclosure sale noticed by the alleged holder of the debtors’ senior secured debt, SHS ACK LLC, which in December 2020 “allegedly” acquired that debt from HarborOne Bank. In addition, litigation with the contractor that built the complex’s ice rink, Construction Source Management LLC, and the Covid-19 pandemic have inhibited the debtors’ ability to develop and complete the project.
“Prior to the Petition Date, the Debtors had extensive discussions with SHS about restructuring the loans to reflect the Debtors’ current operating position, and the downturn in Ice’s revenue due to the pandemic,” the debtors say, but SHS “declined” to restructure the loans on terms acceptable to the debtors and instead elected to foreclose, “forcing the Debtors to file these bankruptcy proceedings in order to preserve the value of their assets and their opportunity to reorganize and restructure the loans.”
The debtors’ largest unsecured creditor is Ashcroft Sullivan Law with a $1.5 million claim, followed by National Grid with a $316,645 claim.
The debtors’ equity is held by Ajax 5Cap NESV LLC.
Reorg First Day is monitoring this case and will provide further coverage as appropriate.