Creditors hoping to get something out of the bankrupt Sports Museum of America will get their chance next month to pick over what is left. The New York City museum, which was partially financed with $57 million of Liberty bonds, filed for Chapter 7 bankruptcy on March 13 in New York.
A meeting with debtors, creditors, and the bankruptcy trustee has been scheduled for April 20.
The New York Liberty Development Corp., a subsidiary of the Empire State Development Corp., sold $52 million of tax-exempt bonds and $5 million of taxable bonds in 2006. According to bankruptcy documents, the for-profit museum has $177.1 million of liabilities, but only has assets worth $55.6 million.
The museum, which opened last May, never managed to attract the attendance or revenue it expected. According to the private placement document, the museum expected to attract 800,000 visitors in its first fiscal year and generate a gross income of $35.9 million. Total business income from 2007 up until the bankruptcy totaled only $3.3 million, according to bankruptcy documents.