Highmark Stadium and the Pittsburgh Riverhounds Professional Soccer Commence Voluntary Chapter 11 Pr
Published on March 27, 2014 under United Soccer League Championship (USL)
Pittsburgh Riverhounds SC News Release
Pittsburgh, PA, March 27, 2014 - The Limited Partnerships owning and operating Highmark Stadium and the Pittsburgh Riverhounds Professional Soccer Club jointly announced today that each company has filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Western District of Pennsylvania.
The companies owning and operating the Highmark Stadium and the Pittsburgh Riverhounds are reorganizing current operations and restructuring their debt obligations, which were largely incurred during the construction of the stadium throughout 2012 and 2013. Due to those debt obligations, the companies have determined their current operating and revenue models could not support continued debt service.
Majority owner, Terrance Shallenberger, will provide interim debtor-in-possession financing (DIP Financing), which will enable both the stadium and team to continue to operate without interruption. This means the 2014 soccer season for the Pittsburgh Riverhounds will commence as planned on March 29th in Orlando, and the first home game will be April 12 at Highmark Stadium. All other planned activities at Highmark Stadium will proceed as scheduled, as will all Riverhounds Academy training programs.
"We, the current majority ownership, took control of the companies owning and operating the Pittsburgh Riverhounds and Highmark Stadium last year, and since then we've been working diligently to create a high-quality and affordable sports and entertainment experience for families," said Shallenberger. "We've taken steps to operate as lean as possible while still delivering a championship-level team and running a first-rate facility. To continue operations, we have determined it is necessary to file for Chapter 11 Bankruptcy protection to restructure high levels of existing debt and to ensure the long-term viability of the companies."
Shallenberger said Highmark Stadium and the Pittsburgh Riverhounds will continue to operate as planned.
"We want our employees, fans and sponsors to know that our commitment to growing the game of soccer and to realizing the full potential of Highmark Stadium will continue during the reorganization process," Shallenberger added.
Both Highmark Stadium and the Pittsburgh Riverhounds are privately owned. No public money was used to finance the building of Highmark Stadium, which was constructed using private funding with a tax credit provided by the Urban Redevelopment Authority of Pittsburgh.
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