Today's Oregonian reports that the Trail Blazer organization has jumped into the Rose Garden bankruptcy fray. The basketball company (owned by Paul Allen) has asked the judge that's overseeing the bankruptcy of Oregon Arena Corp. (owned by Paul Allen, and the owner of the Rose Garden) to order that, if the Rose Garden is given to the bondholders who hold the mortgage on the arena, the bondholders must spend $11 million at once to maintain the arena, including replacing the hot water lines and the scoreboard. Steve Patterson, president of the Trail Blazers (and until this week, also a manager of Oregon Arena) is quoted as saying that if Mr. Allen retains control of the arena, he will find some way to pay for the maintenance. He's also quoted as saying that the maintenance arrangements are something that needs to be done for the fans, and (in the Oregonian's words, not his) he "questioned whether creditors are willing to make the investments necessary to keep the arena in first class condition."
Let me get this straight. First Mr. Allen directed his company to file for bankruptcy rather than provide the money to pay its chief creditor. Next he says that if his chief creditor is given ownership of the arena, security for the $192 million loan, then the creditor -- and not Mr. Allen's companies -- should pay $11 million of expenses that Mr. Allen shirked.
I'm not buying it. I hope the judge doesn't, either. Why not give the arena to the bondholders and let them strike a new deal with the Trail Blazers, at arm's length?