Bankruptcy judge keeps Arizona sports venue on track for sale

A Chapter 11 bankruptcy involving a bond-financed Arizona participant sports venue will continue to move forward in an effort to sell the property after a federal court judge denied a motion to appoint an independent trustee for the debtor or dismiss the case.

Judge Daniel Collins’ Wednesday order acknowledged disputed allegations of mismanagement and infractions on the part of Legacy Cares, the venue’s nonprofit owner, that were because Legacy Cares failed to make scheduled monthly payments toward the revenue fund that supports debt service on the bonds.

A bond payment default occurred in January when only $2.68 million was available in the bond fund to make a $10.3 million interest payment.

In February, bondholders rejected a plan to refinance the bonds and generate funds to settle claims from contractors and others.