Kings arena partner files for bankruptcy

SACRAMENTO, Nov. 21 (UPI) -- The Sacramento Kings' say the company that owns the naming rights for their arena is still on board despite filing for bankruptcy protection.

Court documents revealed Monday Power Balance was seeking Chapter 11 bankruptcy protection in Southern California in the wake of its settlement of a $57.4 million class-action lawsuit that alleged false advertising.

A hearing was held Monday on the Chapter 11 filing before a federal bankruptcy judge in Orange County, the Sacramento (Calif.) Bee said.

Power Balance earlier this year acquired the naming rights to the former Arco Arena for five years, just two months after the lawsuit was filed.

A Kings spokesman told the Bee the team was in close touch with Power Balance and was confident the reorganization would proceed.

"They have assured us of their commitment to the Sacramento Kings and the surrounding community and we expect to continue our productive partnership through this process and into the future," said Chris Clark.

The Bee said the settlement of the case includes a $35 refund to consumers who purchased a Power Balance wristband. The bands are supposed to help improve balance and overall athletic performance for the wearer.