Saturday, Oct. 17, 2009

Freestyle Music Park says it's lined up investors

Freestyle Music Park announced Friday that it has lined up some new investors, an infusion of money to help the park pay some of its debts.

Representatives from FPI MB Entertainment LLC, which owns the park, say they have signed a memorandum of understanding with a group of investors from Florida and Ohio, but declined to say who the investors are and how much they are investing in the park.

"It's a group. It's not a theme park company. It's not Six Flags. It's not the Hershey family," said Steve Baker, president of FPI MB Entertainment. "We're very positive about it and we're very glad that we've gotten this far."

The previous group of investors were Russian and they recently decided the investment was too far away from them, Baker said.

"I think the economy, the recession scared them. When we got into this with them, we thought it was a three- to four-year deal and they just changed their mind," he said.

A few weeks ago, those investors told Freestyle they wanted out and to search for new investors, Baker said.

Freestyle officials went back through their files and found the current group, which had expressed interest in investing last year, he said.

The deal will allow the park to pay some of the debts from its first season to construction companies, bands and other vendors, park spokeswoman Michelle Cantey said.

"They are getting everything together to start making calls [to those owed money] next week," she said.

Seven lawsuits and more than a dozen mechanic's liens have been filed against the park owners for unpaid services and supplies since July.

M.B. Kahn Construction Co. Inc. of Myrtle Beach filed a $314,951.85 lawsuit against FPI MB Entertainment on Oct.1, and Quantum Communications Corp. of Myrtle Beach and Florence filed a $27,331.39 lawsuit Oct. 2.

Jimmy Feuger, general manager of Quantum Communications of Myrtle Beach, said he was encouraged when a Freestyle representative contacted him a few days ago and broke the news.

"For us, there's always good promotional value, so if someone can come in there and keep it afloat and keep it in business, we'd appreciate that," he said. "The potential's there. We definitely want to work with them in the future. I hope those guys make it."

Matt Doda, a band member of the group Willhite, who performed at Freestyle throughout the summer, said he was surprised to receive a phone call from Baker on Friday.

"To me, it was just a gesture of good faith," Doda said. "He told me, 'The bottom line is, you did your work, and we're going to get you your money.'"

Doda and his other band members are owed for playing four to five days each week during August, but they haven't filed a lawsuit against Freestyle Music Park's owners.

"I'm not satisfied yet, obviously. I'll only be satisfied when the check's in my hand, but in the last month or so, I'd been worried," Doda said. "Now, the roller coaster has kind of gone back up in a good way, and I'm feeling a lot better about it. My anxiety level, as of today, is lower, definitely."

Two weeks ago, a local two-man band filed a lawsuit for nearly $10,000 in unpaid performances. Thomas Supply Co. of Myrtle Beach filed a lawsuit against the park for $4,000 in unpaid supplies.

Eck Supply Co. of Myrtle Beach filed a suit for $959.22 in unpaid materials Sept. 14. And the Utah-based Tetra Financial Group filed a $375,000 federal lawsuit on Sept. 9 for leasing fees.

In August, the Brandon Agency filed a $1.4 million lawsuit against FPI MBE - which the parties settled that week - and Roundbox Advisors LLC filed a breach of contract lawsuit for $360,000 in compensation for unpaid consulting services.

Freestyle officials have said the park's first summer was slower than anticipated, despite deep discounts on admission. The park closed for the offseason in mid-September.

The deal is expected to be final in December after all current debts are paid.

"We intend totally between now and closing to have all of our commitments satisfied," he said.

The park plans to reopen in March, but some workers likely will be laid off for the winter, officials said.

Staff writer Dawn Bryant contributed to this report.