Hard Rock (Hard Rock Park) Myrtle Beach Holdings, LLC, et al.
HRP Myrtle Beach Holdings, LLC, and its affiliated debtors (HRP) owned and operated a destination theme park located in Myrtle Beach, South Carolina. On September 24, 2008, HRP filed for chapter 11 bankruptcy protection. This case was converted to Chapter 7 on January 6, 2009 and is jointly administered. At or around the time of conversion, based on the most relevant financial data, the combined debtors showed approximately $314 million in assets, largely comprised of property plant and equipment.
ASSET SALE:
On or about February 17, 2009, the Trustee and FPI MB Entertainment, LLC (FPI) entered into a purchase agreement, whereby FPI agreed to purchase from the estate:
- All real property owned by the bankruptcy estate
- Assignment of transferable / assignable permits and insurance policies
- All good will and other intangible assets associated with the park
- All inventory and equipment
- All rights, claims, credits, causes of action or rights of set-off against third parties
The net book value of these assets based upon the most current operating report filed at the time of the conversion, included:
- Real Estate - $205,181,695
- Licenses, Franchises and other Intangibles - $10,020,282
- Machinery, Equipment and Vehicles - 454,364,200
- Inventory - $4,896,108
- Various Tools, Hardware, and prepaid loan acquisition costs - $16,271,444.11
All assets were sold via a 363 sale and generated $26,411,261.28
RESTRICTED CASH:
HRP's final accounting also indicated more than $14 million as restricted cash on hand. This restricted cash was in the form of securities designated for development. All funds were protected by liens from various secured creditors, who pursued turnover on their own.
PREFERENCES:
The Trustee and his professionals evaluated all disbursements made within 90 days of the petition filing. Based on their review, the Trustee identified 101 Vendors who potentially received preferential transfers and issued demand letters. Subsequent adversary cases were filed against 40 of these vendors. The total gross transfers demanded were $5,898,151.45. To date, the Trustee has collected $743,803.26. As of June 30, 2017, all matters are closed.
STATUS OF CASE:
The Trustee has commenced a claims analysis and filed objections to claims. In November 2016, the Trustee's Final Report was filed. Cash on hand as of June 30, 2017 is $1,845,506.55.
PROFESSIONAL FEES:
There are currently three professional fee orders outstanding:
- Docket #832 - Morris James, LLP
- Docket #833 - Cozen O'Conner
- Docket #834 - Giuliano, Miller & Company, LLC