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Mostafa Afr Files for Bankruptcy

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Old
08-17-2012, 02:03 PM
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Mostafa Afr Files for Bankruptcy

http://www.wetmtv.com/news/local/sto...XfNBjfM4A.cspx

Quote:
The scheduled appearance was to start eviction proceedings against the Elmira Jackals management team still at at First Arena.

Attorney Agan says that the bankruptcy filing will halt the eviction proceeding against the Jackals for now.
Could be no hockey this year

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08-17-2012, 02:39 PM
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From the othe news station:

Quote:
Court Documents show:

Estimated liabilities between $1 million and $10 million dollars.


Estimated assets between $100,000 and $500,000 dollars.


Estimated number of creditors between 50 and 99.



Southern Tier Economic Development Attorney, Steve Agan, tells WENY-TV News that there was a scheduled hearing for eviction Friday morning in Chemung County, but it has since been canceled.

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08-17-2012, 02:50 PM
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Quote:
Originally Posted by BK Triple Threat View Post
Did you read the articles? The bankruptcy clearly was a tactic to INCREASE the chance that an Afr-owned Jackals team plays in Elmira this season -- both of them clearly stated that this filing forestalled eviction proceedings. That's what bankruptcy generally does for corporations -- allows them to continue operations while they attempt to restructure and settle debts, giving them some breathing space from creditors. Looks like that's exactly what Afr has gotten, to me.

Now, I do have several questions that are not answered in the articles quoted. Did Afr file _personal_ bankruptcy, or did the corporate entity that owns the Jackals file _corporate_ bankruptcy? Or did the Jackals themselves file _corporate_ bankruptcy? Which entity is bankrupt would affect what the effects of this action are.

Also, if corporate, was this Chapter 11 re-organization or Chapter 7 liquidation?

So, before we jump the gun to "NO HOCKEY THIS YEAR", let's get some more facts.

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08-17-2012, 03:03 PM
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Not sure if this helps with your answer but Afr does own the team.

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08-17-2012, 03:14 PM
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Quote:
Originally Posted by HansH View Post
Did you read the articles? The bankruptcy clearly was a tactic to INCREASE the chance that an Afr-owned Jackals team plays in Elmira this season -- both of them clearly stated that this filing forestalled eviction proceedings. That's what bankruptcy generally does for corporations -- allows them to continue operations while they attempt to restructure and settle debts, giving them some breathing space from creditors. Looks like that's exactly what Afr has gotten, to me.

Now, I do have several questions that are not answered in the articles quoted. Did Afr file _personal_ bankruptcy, or did the corporate entity that owns the Jackals file _corporate_ bankruptcy? Or did the Jackals themselves file _corporate_ bankruptcy? Which entity is bankrupt would affect what the effects of this action are.

Also, if corporate, was this Chapter 11 re-organization or Chapter 7 liquidation?

So, before we jump the gun to "NO HOCKEY THIS YEAR", let's get some more facts.
Heres what he filed:

http://www.weny.com/usr/EDA.petition.pdf

Chapter 11.

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08-17-2012, 03:37 PM
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Quote:
Originally Posted by BK Triple Threat View Post
Heres what he filed:

http://www.weny.com/usr/EDA.petition.pdf

Chapter 11.
So, Afr didn't file bankruptcy. The corporate entity he controls did. Corporations frequently emerge from Chapter 11 bankruptcy with a leaner debtsheet and a better structure going forward (see K-mart, who went bankrupt, and when they emerged, were strong enough to purchase rival Sears). Even the Ottawa Senators went bankrupt, and didn't miss a single game of play.

I still maintain that you've WAY jumped the gun on your "could be no hockey this year". Almost anything COULD happen, but with the glacial pace that most corporate bankruptcies play out, I highly doubt anything will be settled by the beginning of the season, and if things do go south during the season, the ECHL has shown in the past a willingness to take over a franchise to finish the season (see ECHL Louisiana).

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08-17-2012, 03:41 PM
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Fair enough.

I do find it funny he owes some teams cash and the ECHL league.

Also a televison network called MLSE.

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08-17-2012, 07:28 PM
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http://elmira-corning.ynn.com/conten...or-bankruptcy/

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08-18-2012, 12:52 AM
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Wouldn't get too excited about the Jackals playing:

http://www.stargazette.com/article/2...text|FRONTPAGE

Quote:
Though Elmira Jackals president Tamer Afr says a recent bankruptcy filing won’t affect the hockey team’s ability to play in Elmira this fall, another recent court filing suggests there may be trouble for the team ahead of the 2012-13 season.
Quote:
Afr, president of EDA, said he didn’t think the bankruptcy filing would affect the Jackals.

“The two are separate operations and entities,” Afr said in an e-mail Friday.

The Afrs also own M-Team LLC, which operates the Jackals.
Quote:
In documents filed Aug. 9 in U.S. District Court in Rochester, M-Team accuses Elm Arena and STED of breach of contract.

Exhibits in the filing show that Elm Arena doesn’t think the Jackals have a valid lease for the 2012-13 season. Freeman on Friday confirmed to this newspaper that Elm Arena still takes that position.

Tamer Afr told this newspaper that the Jackals have a lease, and that Elm Arena is “trying to argue it doesn’t exist.”

The Afrs are relying on a May 17 agreement between Chemung County, STED and EDA that allows the Jackals to play in the fall.

Freeman said that memo is void because the Afrs failed to make required mortgage and insurance payments.
I don't know enough about the contract. All I know is there were terms and Afr had to live up to them. But it was never stated who was in control of the arena. It made it sound like a hockey only deal and they would be looking for new facility owners. The county executive made it sound like they made it because time was short and the league needed to know if we would be in or not.

Quote:
“We certainly want the ECHL to remain,” he said. “We want the Jackals to remain. If we can reach a deal with the Afrs, we’re happy to do that. If we can reach a deal in that letter with the ECHL, we’re happy.

“If not, we’ll be looking at other professional hockey options.”

Aside from the Federal Hockey League, Freeman is talking to other professional leagues, though he declined to elaborate.

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08-19-2012, 11:45 AM
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MLSE isn't a TV network. MLSE owns the Leafs, Marlies, Raptors, and Toronto FC as well as their venues and multiple TV networks. MLSE is in turn owned by several other companies.

I wonder why he essentially owes money to the Leafs.

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08-19-2012, 06:37 PM
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Quote:
Originally Posted by FrancoRussianAlaskan View Post
MLSE isn't a TV network. MLSE owns the Leafs, Marlies, Raptors, and Toronto FC as well as their venues and multiple TV networks. MLSE is in turn owned by several other companies.

I wonder why he essentially owes money to the Leafs.
No idea, but he also owes Anahiem(Affiliate), Binghampton(Affiliate), South Carolina and NJ Devils.(No idea here, Pielmeier was traded there from Anahiem, but we never signed him)

I wonder how hes in good standing with the league? He owes them $81,000

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08-19-2012, 07:40 PM
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So Afr is part owner of two corporations, one of which was the arena operator and the other operates the Jackals. Since the corp that operated the arena has been replaced, they have no income, and are going into bankruptcy. I'd expect that company will probably fold, unless they have some other purpose for it. The company that owns the Jackals is not going bankrupt, so Afr is correct, the bankruptcy shouldn't affect the team.

It is concerning that someone from the new arena operating company is questioning the Jackals lease, and suggesting they would bring in a Federal league team. I hope they don't think the leagues are equivalent, and they can bring in a much lower level of hockey and still get the same income.

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08-19-2012, 09:37 PM
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Quote:
Originally Posted by royals119 View Post
So Afr is part owner of two corporations, one of which was the arena operator and the other operates the Jackals. Since the corp that operated the arena has been replaced, they have no income, and are going into bankruptcy. I'd expect that company will probably fold, unless they have some other purpose for it. The company that owns the Jackals is not going bankrupt, so Afr is correct, the bankruptcy shouldn't affect the team.

It is concerning that someone from the new arena operating company is questioning the Jackals lease, and suggesting they would bring in a Federal league team. I hope they don't think the leagues are equivalent, and they can bring in a much lower level of hockey and still get the same income.
Wish I could tell you the May 17th agreement details but I can't. It was an MOU(Memorandom of Understanding)basically there were terms set that Afr had to live up to and follow. However the vague details that seemed to be were that it was only for the hockey team, as they had currently lost the arena. The county was waiting for a deed to get signed(which they mentioned on July 24th that it had never gotten signed) So my guess is it's only for hockey. So then why would he be responsible for mortgage and insurance payments? That seems beyond hockey matters. I wonder how this guy would even know what the May 17th agreement even said.

As for the quality you are right. I wonder what he meant by "other pro leagues"? Aside from the AHL none of the others geographically fit(that NPHL isn't taking off anytime soon)

I don't like the Afr's but for once they have a valid case. Unfortunatly the Jackals are a profitable franchise. However I would say it's not in typical fashion. Doc owned the arena so the money basically went from one pocket to another, as it turns out he hardly dished out cash. So making, agreeing to spend but never spending. Te crowds weren't bad these past few years but Mr. Nichols is the king of padding attendance and giving out freebees. I sit in the most expensive section. Every game it's all different people, I think we are the only season ticket holders left(used to be chop full of them)

I really don't know how the courts will rule on the lease being voided issue. But if these guys were smart they would shut up and suck it up for a year. It's a one year agreement, then do whatever. It would hurt their income as Doc would no longer be privy to concession cash and all that. Another league(unless it's the AHL) won't bring in near the income. The AHL comes with many obstacles and higher prices, higher prices could mean more than likely much smaller attendance. Now don't be silly i'm not expecting the AHL to show up on the 11th hour. But I have no idea what leagues that aren't the ECHL or FHL that are pro that these dudes are looking at.

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08-20-2012, 02:54 AM
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If anybody else read any of that PDF of the papers he filed I need something explained to me. What is this 180 days business? Something I forgot to mention is the arena does not officially have a new owner yet, they have announced something but the "sale" hasn't been made official yet. They have to wait for this matter now. Theres been a hot rumor for months that Afr had the money in for the January date that could have avoided this whole mess and that the GM Nichols didn't do with the money what he was supposed to. However the money apparently made it to the bank, so something happened because it was gone. Of course all they have to do in todays world is the bank needs to look at his account with them. Transactions and statements don't lie. I wonder if this is some different way to try and win the battle as well as financial protection?

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08-21-2012, 06:02 PM
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This has no current meaning but here:

http://www.wetmtv.com/news/local/sto...zFL5VFZ7w.cspx

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