Owner of Yankee Stadium Parking Garage Hires Bankruptcy Attorney

By John Clark

The owner of the parking garages at the newly constructed Yankee Stadium, home of baseball?s most polarizing team, has hired a team of bankruptcy attorneys, according to a report from Bloomberg News.

Sources are quick to note, however, that Bronx Parking Development Corp. has promised that it is not actually planning to file for bankruptcy.

The company claims that the bankruptcy attorneys have only been hired to offer financial advice, rather than pave the way for a Chapter 11.

Parking Garage at Yankee Stadium Falls into Serious Debt

Sources say Bronx Parking tried to conceal the hiring of the bankruptcy attorneys, but the information was released when it filed its 2013 operating budget with the Municipal Securities Rulemaking Board.

At its inception, the company took on $240 million in tax-exempt debt, which was determined to be a reasonable amount of debt for the parking garage firm, which expected to earn much more revenue over the first few years of its deal with the Yankees.

But the garages, which have a total of 9,300 parking spaces, have earned much less revenue than expected, as most Yankees fans have decided to take public transportation, via bus or train, to the ballpark instead of driving.

The high cost of parking for a single game, reportedly 35 dollars, has likely led a lot of fans to avoid parking in favor of cheaper forms of transportation.

And most Major League Baseball teams saw a drop in attendance over the past few years, as the unemployment rate continued to rise and the cost of tickets and concessions saw a marked increase across the league.

Bronx Parking Claims that a Bankruptcy Filing is Unlikely

It?s not a particularly good time to be in the baseball business, especially if you?re a debt-laden parking garage company that has to convince nearly 10,000 fans to drive to every game in a city with the best public transportation network in the United States.

But Bronx Parking insists that it is having productive conversations with its creditors, despite one official?s admission that the company is going through ?very, very delicate times,? as it may not meet a $6.9 million interest payment due later this month.

Of course, even if it is able to settle its current debts, Bronx Parking still only has about 4,000 of its 9,300 spaces full on game days. Without more customers, the parking company may have no choice but to file for bankruptcy protection.

Source: http://www.clearbankruptcy.com/blog/owner-of-yankee-stadium-parking-garage-hires-bankruptcy-attorney/

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