PITTSBURGH (KDKA) – The companies operating Highmark Stadium and the Pittsburgh Riverhounds have filed for Chapter 11 bankruptcy protection.
However, the team’s season will continue as planned.
According to a press release from the team, Limited Partnerships and the Pittsburgh Riverhounds Professional Soccer Club have filed a voluntary petition under Chapter 11.
The companies are looking to reorganize, “current operations and restructuring their debt obligations, which were largely incurred during the construction of the stadium throughout 2012 and 2013.“
“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,” Majority Owner Terrance Shallenberger said in a 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.”
The Riverhounds’ season will continue as scheduled. They will open the season on the road against Orlando City SC on Saturday.
“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 said.
Pittsburgh Riverhounds CEO Jason Kutney joined Colin Dunlap Thursday night on 93-7 The Fan to discuss the bankruptcy news.
Colin asked Kutney what this means for the team and the stadium they call home.
“Right now, it means we have to look at a restructuring and a reorganization, and really be restructuring and servicing debt that is tied to Highmark Stadium,” said Kutney.
Colin also asked Kutney about the time it will take for the team to come out on the other side of the filing.
“There’s no true understanding of how long it will take,” he said. “It’s up to other people in the bankruptcy court to determine the length of time that you’re involved.”
Click the link to below to listen to the entire conversation: