Otters, in bankruptcy, owe city of Erie nearly $20,000
But a number of smaller businesses and organizations also will experience a windfall from the sale, as the Otters use the money to pay off other debts.
Among the major beneficiaries, according to bankruptcy records, will be the city of
The debt -- one of the Otters' largest, after the millions of dollars owed the
The amusement tax, which
The bankruptcy records do not list how long the Otters have been in arrears, but the team started to get behind around 2012, said the city's coordinator of special events,
Rocco said he has worked with the Otters management to reduce the amount of back taxes. So far this year, according to city records, the Otters have remitted
"They have made good strides in getting up to date," Lichtenwalter said. "They were a little behind."
The city for the past several years has collected a total of more than
Erie can continue to expect amusement tax revenue from the Otters this season as long the team continues its OHL playoff run. The Otters are in the league's
A lawyer for the Otters,
Secured and unsecured
Bassin in December hired a
The
The city of
In most Chapter 11 bankruptcies, in which a debtor reorganizes to pay creditors, unsecured creditors typically receive a percentage of the amount owed, based on the how much the debtors' assets are worth. The Otters' case is unusual because the team anticipates all unsecured creditors "will be paid in full," the team said in a previous statement.
Another large unsecured creditor is
"I will for sure," Santos said about recovering all the debt. "I am personal friends with Sherry. He called me two days ago. He said, 'You're going to get 100 percent of your money.'"
Working for a sale
The time period when the Otters fell into arrears with the city -- in 2012 -- coincides with the period when the franchise experienced financial problems after years of poor teams and weak attendance. Bassin turned for financial help to the
When the sale failed to occur, the
The
Agresti has set no deadline for a sale, though Caporale, of Game Plan, the Otters' broker, said the Otters want a sale to occur soon.
"We're going to move as quickly as we can and hopefully bring an acceptable bid and agreement to the court just as soon as we can," he said Friday.
Staff writer
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