The financial maneuvering over the future of Freestyle Music Park continues, with the park's owners having secured a new mortgage with a foreign lender.
WMBF News reports that FPI US LCC has agreed to borrow $20 million from Cyprus-based Ysanne Trading Limited. However, no decision has been made on whether Freestyle Music Park will be sold, leased to a third-party operator or reopened by FPI US itself.
The current owners purchased Freestyle Music Park out of foreclosure, having been its previous mortage lender. While it was reported the company had paid $7 million for the park, in reality it did not pay anything as it was owed a much larger amount.
Freestyle Music Park has been kept largely in one piece since its financial collapse in 2009, although significant refurbishments would need to be made to its rides in order for it to reopen to the public. The new mortgage arrangement has fueled speculation that FPI US will use the funds to carry out the required work, although the company is yet to comment on the situation.
The most recent takeover of Freestyle Music Park was a controversial one, with several creditors unsuccessfully challenging the foreclosure lawsuit on the grounds that the mortage holder (FPI US) and the owner of the park (FPI MB Entertainment) are actually the same entity. The companies involved claimed that the mortgage situation was engineered to enable the owners to avoid paying creditors in the event of a bankruptcy, with the mortgage holder instead being first in line to receive any funds raised from selling off the park.
Freestyle Music Park struggled to stay afloat after opening in April 2008 under the Hard Rock Park name. Visitor numbers fell well short of the owner's 3 million target and the park was forced to file for Chapter 11 bankruptcy protection, closing its gates in September 2008.
It was subsequently picked up by FPI MB Entertainment for just $25 million, having cost a reported $400 million to build. It reopened for the 2009 season under the Freestyle Music Park name, but failed to reopen in 2010 after continuing to be plagued by poor attendance figures and financial problems.