XP Events Gets Liquid

A sports-merchandising company owned by the son of concert promoter Barry Fey could be headed for liquidation after filing for Chapter 11 bankruptcy reorganization last fall.

A trustee for Alan Fey’s XP Events recently asked to convert the company’s case to a Chapter 7 liquidation, claiming that XP has “suffered a substantial loss or diminution with no reasonable likelihood of rehabilitation,” the Denver Post reported.

XP reportedly sold its merchandising contracts with professional sports teams and the 2010 Winter Olympics to Gameday Entertainment for $5.5 million in January. One month later, however, the company claimed in court filings that it had only posted a $1.4 million gain from the sale.

Gameday is one of several creditors in XP’s bankruptcy claim, the Post said, along with MLB’s Arizona Diamondbacks, the NFL’s Jacksonville Jaguars and the NBA’s Charlotte Bobcats and Oklahoma City Thunder.

In court filings, XP reported sales of $144,000 and an operating loss of nearly $243,000 in January.