The Prescott Valley Town Council unanimously approved to adopt Resolution 2008 at its special town council meeting Thursday night.
Among other things, it approves participation in and voting in favor of the debtors’ first amended Chapter 11 bankruptcy plan of reorganization involving the Prescott Valley Event Center, home to the Northern Arizona Suns of the NBA G League.
The move was a continuation of what began at a work study session in June where town staff laid out the reasons and rationale for the Town of Prescott Valley being involved in the Event Center’s bankruptcy, said Town Manager Larry Tarkowski.
“We had laid out the entire plan, showing how we were going to save the citizens of Prescott Valley significant amounts of money while at the same time, increasing the programming and economic impact that the event center was going to have on the Town of Prescott Valley,” Tarkowski said.
The plan has been worked out by a number of different parties that include creditors, debtors and other interest holders that is currently out for a vote by all of the creditors, said Town Attorney Ivan Legler.
If approved by all of the creditors, there will be a hearing in front of a judge on Wednesday, Sept. 6, and the plan could possibly be confirmed, Legler said.
If confirmed, the Town of Prescott Valley would start making payments on the arena to the majority bondholder and keep the venue operating.
In order for the plan to pass by vote, half of the creditors in number in each class and two-thirds of the creditors in amount of their claim need to vote in favor of the plan, said bankruptcy attorney Jared Parker.
If any class does not get that level of voting, they are deemed as not approving the plan, Parker said.
Ultimately, if it does not meet the requirements of numbers within a class and the appropriate classes voting for the plan, it all comes down to the judge, who ultimately decides, Parker said.