BOSTON -- Stadium Management Corp. filed for federal bankruptcy protection Tuesday, stalling the planned auction of Sullivan Stadium, home of the New England Patriots football team, the team's attorney said.
Stadium Management, owned by Patriots Vice President Chuck Sullivan, filed for protection from creditors under Chapter 11 of the federal bankruptcy code in U.S. Bankruptcy Court in Boston, attorney Joel Kozol said.
The 61,000-seat stadium in Foxboro, Mass., was to be auctioned off Tuesday by the Connecticut Bank and Trust Co., which holds a $9 million second mortgage on the facility.
The Patriots are reportedly $82 million in debt.
'The Sullivans have struggled for too long to work out their financial problems with their creditors,' Kozol said. 'They will now have the relief and the assistance the courts can provide.
'We are hopeful the Sullivans will be able to reorganize their affairs in a manner which will allow them to retain ownership and control of both Sullivan Stadium and the New England Patriots.'
The bankruptcy filing comes one day after U.S. District Judge Joseph Tauro refused to block the planned foreclosure auction of Sullivan Stadium and two days after New York real estate developer Donald Trump withdrew from consideration as a potential buyer of the team, now owned by founder Billy Sullivan and his family.
Kozol said Tuesday, however, Trump had not entirely ruled out purchasing the team.
'He says he is not out of the picture,' Kozol said. 'The whole issue has been discussed (around the league). He says that if he can get the informal assurances from the league, then he will go forward with the deal.'
The Sullivans are in a court battle with Philadelphia businessman Fran Murray's group, which owns the option to buy the club and is suing to obtain controlling stock. The Sullivans owe Murray's group $21 million.
On Jan. 26, Murray declared he was taking over team management and the stock of Billy Sullivan, seeking an injunction in Superior Court to gain control.
Murray insists he does not want to control the team, but wants to guarantee repayment of the $21 million he and partner John Charlton have loaned the Sullivans, starting with a $3.9 million loan Murray claims is in default.
Murray sued, fearing Sullivan would escape the debt by declaring bankruptcy. The Sullivans claim they are not in default because the loan agreement allowed until Dec. 31, 1989, to repay the $3.9 million.
