Bondholders may have actionable claims related to the sale of now-defaulted debt that financed an Arizona participant sports venue for Legacy Cares Inc., which filed for bankruptcy in May, according to a disclosure notice.
Law firm Davis & Ceriani "has concluded that there may be actionable claims related to the sale of the bonds that are potential sources of recovery for individual bondholders, which are not available to the trust estate,"
Attorneys at the law firm, which was retained by the trustee at the direction of a committee of several large institutional bondholders to investigate potential claims, did not immediately respond to a request for comment Friday.
Legacy Cares
The bond trustee's notice also said, "outside parties" have "expressed interest in the possibility of purchasing bonds or claims from individual holders," specifically naming Saybrook Capital, which along with attorneys from Davis & Ceriani, will make presentations to bondholders during a call scheduled for Wednesday.
Efforts to sell the 320-acre Legacy Park in Mesa, which hosts youth and amateur competitions in sports — including soccer, basketball, volleyball, and pickleball — are moving forward after U.S. Bankruptcy Court Judge Daniel Collins approved bidding procedures and timelines earlier this month. A Sept. 28 bid deadline was set. In the case of multiple bids, an auction will be held on Oct. 5, and a court hearing to consider approving a sale was scheduled for Oct. 18.
Doug Moss resigned his positions as president and board member of nonprofit Legacy Cares at the end of August, saying his presence was no longer serving the best interests of Legacy Park.
The U.S. trustee monitoring the bankruptcy case filed a motion in June
In a statement, Moss acknowledged being "a focal point" in the U.S. trustee's efforts.
"I believe that I have always been transparent in conducting park operations, including during the bankruptcy process and have worked hard to support the charitable mission of Legacy Cares, Inc," the statement said.
