Paul Allen's Oregon Arena Corp. Files Ch. 11

PORTLAND, OR-Oregon Arena Corp., the company established by billionaire Paul Allen to own Rose Garden Arena, this morning filed for protection from creditors under Chapter 11 of the US Bankruptcy Code while it attempts to restructure its relatively high-interest debt from the arena’s construction.

The Rose Garden Arena is home to Allen’s NBA team the Portland Trailblazers. The move is an attempt by OAC to lower its payments on the estimated $155 million in bond debt it incurred to build the arena, which was completed in 1995. According to published reports, the bonds OAC sold to fund construction, which are held by TIAA-CREF and an affiliate of Prudential, carry and interest rate of about 9% and cannot be refinanced.

In the documents filed in U.S. Bankruptcy Court in Portland, OAC estimates the value of its assets are between $10 million and $50 while its debt is upward of $100 million. Its creditors number between 50 and 99, according to the filing.