Future Legends secures restraining order preventing bank from repossessing vehicles

WINDSOR — Future Legends was able to avoid repossession of several utility vehicles on Thursday, after attorneys and owner Jeff Katofsky convinced a Nevada bankruptcy judge to issue a restraining order against the bank suing for repossession.

Exchange Bank filed a lawsuit in July against Katofsky and the Future Legends entity because it hadn’t made good on two loan payments on eight vehicles in two different loans from 2022 and 2023. Together with the value of the vehicles, plus attorneys’ and other costs, the bank was seeking $50,872 from the first loan, which covered four vehicles and various accessories. The bank was seeking $125,714 on the second loan to cover four more vehicles. The vehicles in question are a John Deere mower, two John Deere gators, a John Deere lawn tractor and five utility vehicles.

Katofsky’s attorneys were due in Weld District Court on Thursday to show cause why the bank shouldn’t repossess the equipment, but Katofsky and his bankruptcy attorney sought an emergency hearing in Nevada. Nevada Bankruptcy Judge Hillary Barnes granted a temporary restraining order, which is good for only 14 days by law, preventing the bank from repossessing the vehicles.

Kastofsky and his attorney also were successful late last week in another emergency hearing to convince a different bankruptcy judge to prevent the Town of Windsor from pulling its temporary occupancy permits, which allowed public use of the facility. After renewing them seven times with no progress on safety and sanitation issues on the property, Windsor was refusing to renew the certificates for an eighth time. The argument was that the dome was the site of a major soccer tournament over the weekend, and that funding Katofsky has said he secured was tied to the permits.

Katofsky reported in court documents that he had secured two different loans: a $40 million loan to finish the clubhouse inside the dome and a $260 million loan to be dispersed over 12 months from a company called Phoenix Capital Solutions out of Florida.

Exchange Bank did not attend the virtual hearing on Thursday, having expressed concern with Katofsky’s attorneys that the vehicles were owned by the Future Legends LLC, not the Future Legends 5 LLC, which is the debtor in the bankruptcy.

Complicating the matters is the ownership structure of the 118-acre sports park, various parts of which are owned by seven total limited liability companies. Katofsky has reported that the dome is owned by Future Legends 5 LLC, but a court-appointed receiver on the property has called the lease of the dome a “sham” lease, used to avoid consequences of financial mismanagement by filing for bankruptcy protection.

In Thursday’s hearing, Katofsky testified that thousands of kids use the dome every day, and that the vehicles are necessary to move equipment around.

Katofsky’s attorney reported that Future Legends only has about $60,000 to $70,000 left to pay on the vehicles, and Katofsky said only about $20,000 was in arrears.

“Without this equipment the debtor will suffer immediate and irreparable harm,” Katofsky’s attorney, Jeanette McPherson said. “Respectfully, it’s not a lot of money that Exchange Bank has outstanding owed to it. For those reasons, we’d request a temporary restraining order be entered.”

Katofsky said with the $260 million he had secured, he should be getting some money this week or next to begin paying debts. “The financing will really cure everything,” Katofsky told the judge.

Case No. 24-51031, Chapter 11 Bankruptcy, In re: Future Legends 5 LLC, in United States Bankruptcy Court, District of Nevada, filed Oct. 15, 2024.

Case No. 24CV1297, Exchange Bank vs. Future Legends LLC, in Weld District Court, filed July 3, 2024.

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