Business

  

Judge allows Wild West sale

Murphy Brothers Exposition's purchase of the amusement park remnants should close May 30.

BY BILL WILSON

The Wichita Eagle

Wild West World drew one step closer to new ownership Thursday when a U.S. Bankruptcy Court judge in Wichita signed off on its sale.

Judge Robert Nugent approved the $2 million sale of the park to Tulsa-based Murphy Brothers Exposition, a deal tentatively set to close May 30.

The deal Nugent approved includes the assumption by Murphy Brothers of a $1 million mortgage on the park's parking lot, held by the city of Park City.

The next step for the sale is closing. Sources close to the bankruptcy say the sale should close, but Murphy Brothers could still pull out and forfeit a small earnest money deposit. The company also could request more time to assemble the deal.

If the deal closes, the Tulsa company is expected to move quickly into the park for a summer of renovations before the park reopens under a new theme in 2009.

Jerry Murphy, president of Murphy Brothers, plans to change the name, add rides and make other upgrades.

Tom Lasater, Park City's bankruptcy lawyer, said the city is optimistic the sale will close later this month. He offered no objections to the sale on the city's behalf, saying the assumed mortgage should allow the city to recover its investment.

"The city wants to see the park returned to its highest and best use, and that's an amusement park," he said.

The sale proceeds will go first to a multibank lending consortium headed by Mount Hope-based First National Bank of Southern Kansas. It has around $6 million -- or roughly 30 percent of the lending on the park -- invested in the failed project.

The hearing was accompanied by several orders to begin disbursing money from 30 Wild West World-related auctions, from midway prizes to computers to restaurant equipment.

Wichita attorney Bill Zimmerman, representing the park's unsecured creditors, said it's unlikely his clients will receive any money from the sales.

In addition to secured bank creditors, Zimmerman said the Internal Revenue Service is owed about $500,000 in back taxes.

" (The unsecured creditors will get) very little," Zimmerman said. "There might be a nominal distribution at the end, but that's about it."

Reach Bill Wilson at 316-268-6290 or bwilson@wichitaeagle.com.