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CBS News 8 - San Diego, CA News Station - KFMB Channel 8 | cbs8.com

XFL's bankruptcy filing is affecting creditors in St. Louis

“So there were two years left of 10 games, and $100,000 dollars a game. And there may be some other outstanding issues involved in that”

ST. LOUIS —

The XFL filed for Bankruptcy on Monday, claiming that it owes 1,000 to 5,000 creditors somewhere between $10 to $50 million dollars. 

The St. Louis Convention and Visitors Commission is one of the creditors on the nearly 121 page list. The XFL claimed it owes the commission $1.6 million. 

Bob Wallace, one of the attorneys from Thompson Coburn LLP representing the commission, said this number will have to be verified after research done by the commission.

“That is the number that the XFL put in their pleading,” Wallace said. “So we’ll have to verify that whether it’s more or less.” 

Wallace said the XFL had a three-year lease with the commission to use the Dome at the America’s Center for five St. Louis BattleHawks home games per year, and that the league was obligated to pay from the beginning even if it went out of business.

“We were taking the ability for us to lease the building to other people off the table because we were reserving five dates for them,” Wallace said. “So there were two years left of 10 games, and $100,000 dollars a game. And there may be some other outstanding issues involved in that.”

Wallace added that the St. Louis Convention and Visitors Commission did have an irrevocable letter of credit on the books with the XFL that it turned over to the bank on Friday, the same day the XFL announced it was suspending operations. 

“The money was in the bank,” Wallace said. “And we informed the bank that we thought we want to draw down on that. I’m not sure exactly whether we got that money yet, but the commission did let the bank know.”

“They did file a motion,” Wallace said. “It hasn’t been granted, but it probably will be, to reject their various leases. Which means they’re trying to get out from under the lease saying, ‘we no longer are in business. We don’t need this lease to be held. We’re rejecting this.’”

Wallace added that this could be a very long process, not including the lawsuit. 

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