Suburban Hockey Club Turns Rink Over to Lender
A suburban hockey club agreed to hand over the ice rink it built to its lender, in order to settle a $25M judgment. Leafs Hockey Club built the Leafs Ice Center at 801 Wesemann Dr in West Dundee in 2007 with bonds issued by the Illinois Finance Authority.
The club guaranteed the bonds but was hit with a foreclosure lawsuit by UMB Group in 2013 when it became obvious it couldn't pay back the loan. A federal judge ruled in favor of UMB and, when the two sides couldn't negotiate a collection plan, UMB broke off talks and pursued the judgment, prompting the hockey club to file for Chapter 11 bankruptcy protection, Crain's reports.
Under the terms of the settlement, a venture called Trimalchio Ice Arenas will take over ownership of the rink on behalf of UMB. Leafs Hockey Club will lease the rink, which will eventually be sold to pay off bondholders. [Crain's]