Freestyle Music Park likely not reopening
Tue, 30 Mar 2010 04:02:13 GMT —
A lawyer for Freestyle Music Park said Monday the struggling theme park has yet to find investors to bail it out, and it probably won't open for the 2010 season.
"It sort of is what it is," said Nexsen Pruet attorney David Slough.
"It's been the same story for months now that currently there are no plans to open up, but it could change," Slough said.
A new group of investors is the only way the park could reopen . B ut after months of searching, Slough said there has been no deal made.
"It's a tight credit market, so any potential investors that are out there -- it's difficult for those investors to get the funds to invest in the park," he said.
Currently, Freestyle Music Park does not have the capital to continue park operations, Slough said
The park's owner, FPI MB Entertainment, bought the park out of bankruptcy when the former Hard R ock Park went bankrupt.
With that purchase came millions of dollars of inherited debt in the form of existing leases. Slough said Freestyle has already spent close to $1.9 million paying back payments on the debt.
There's a remaining $570,000 of back payments due by Thursday per an order from bankruptcy judge, but Slough didn't say whether his clients would be able to make the payment.
If they did, the back payments would be paid off, but the leases would still exist and the park's obligation to pay those would remain.
If Freestyle doesn't pay, a judgement will be issued against them which would push them further into financial trouble -- just another reason they need a big infusion of cash.
"In this situation, it's fairly certain they're having difficulties reopening without investors," Slough said.
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