Highmark Stadium, Pittsburgh Riverhounds bankruptcy announced

Pittsburgh RiverhoundsOwners of the Pittsburgh Riverhounds Professional Soccer Club (USL Pro) and Highmark Stadium have declared Chapter 11 bankruptcy in a move to restructure debt.

The bankruptcy won’t affect the daily operations of the stadium or the team: a Chapter 11 filing means the LLCs owning both entities will have time to restructure debt and work with banks on a new financing plan. In addition, majority owner Terrance Shallenberger is arranging interim debtor-in-possession financing to keep the entities afloat.

“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,” Shallenberger said in a prepared statement. “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.”

Much of the debt issue related to construction of the privately financed Highmark Stadium, which seats 3,500 and cost $10.2 million.

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August Publications