By Abim Thomas and Christopher Somma
U.S. Bankruptcy Judge Madeline Coleman approved a modified Chapter 11 Bankruptcy Plan for Philadelphia Entertainment and Development Partners, L.P (“Philadelphia Entertainment”) on Monday, July 28, 2014.
Philadelphia Entertainment was formed solely to develop a Foxwoods casino project. In its Chapter 11 Bankruptcy schedules filed in April, Philadelphia Development listed between $10 million and $50 million in assets and between $50 million and $100 million in liabilities.
The Foxwoods partnership was awarded one of two licenses for a casino to be built in the city of Philadelphia in 2006. However, the Pennsylvania Gaming Control Board revoked Foxwoods’ license in December 2010 when it failed to secure financing or submit its construction plans by the December 2009 deadline.
The denial of an appeal to the Pennsylvania’s Supreme Court left Philadelphia Entertainment with no way to pay its creditors forcing it to seek Chapter 11 protection. Consequently, the Pennsylvania Gaming Control Board reopened the bidding process for the second license. In response, Pennsylvania Entertainment filed a $50 million lawsuit against the agency in May of this year seeking to recoup the money it paid for the gaming license.
The case is In re: Philadelphia Entertainment & Development Partners, LP, case number 2:14-bk-12482, in the United States Bankruptcy Court for the Eastern District of Pennsylvania.