By Cliff Peale and Brenna R. Kelly
Enquirer staff writers

The owner of the Florence Freedom filed for Chapter 11 bankruptcy Friday, another in a series of financial setbacks for the minor-league baseball team that finished its second season this week.

Northern Kentucky Professional Baseball LLC said in the filing in U.S. Bankruptcy Court in Covington it owed nearly $9.5 million to more than 50 contractors and vendors.

The Chapter 11 filing means the company will try to reorganize its debts and continue to operate. The owners have said they are seeking new investors and hope to play again in the Frontier League next year.

"The bankruptcy court will serve as an excellent forum where all the interested parties can come together, get the stadium finished and field a baseball team in the spring," said John Schuh, the attorney who filed the bankruptcy petition.

One of the partners in the team, Chuck Hildebrant, is facing a federal investigation into the way he financed construction of the Freedom's stadium off Interstate 75 and U.S. 42. The baseball club is facing 32 liens from 29 contractors totaling $4.79 million.

Other partners have said that under the lease with the city of Florence, Hildebrant and his wife Connie are legally liable for the debts.

The filing refers to Hildebrant's troubles: "Chuck Hildebrant's ownership of 20 percent of the membership interest in the debtor is subject to challenge for possible improprieties in various financial dealings prior to the filing of the bankruptcy case," it said.

Hildebrant's attorney, Jack Rubenstein, could not be reached for comment. Tom Niehaus, whose family limited partnership owns 27 percent of the Freedom partnership, could not be reached for comment.

The city of Florence issued a statement saying the filing would "put on hold" part of the suit it filed against NKPB and Hildebrant last month.

"The city, however, may continue to pursue its state court action against Connie and Chuck Hildebrant on their personal financial guarantee as provided in the lease between the city of Florence and NKPB," the statement said. "The city will continue to pursue marshaling the liens filed by the companies which performed work and provided materials to NKPB to construct the stadium, with the goal that these contractors will be satisfied."

The filing also said:

• Total assets of $9.35 million include "prepaid rent inherent in the stadium lease."

• The biggest single owner of Northern Kentucky Professional Baseball is More Hits LLC, a company operated by the family of Bob Klensch.

In a previous interview, Klensch's attorney said Klensch paid contractors more than $371,000 out of his own pocket to satisfy unpaid bills. Don Ruberg said Klensch still hasn't been repaid.

"He thought for sure he'd be paid," Ruberg said. "The only ones who have personal liability under that lease, in my opinion, are Chuck and Connie Hildebrant."

The other remaining partner is Tripleplay LLC, controlled by Rodger Kessler of Zanesville, Ohio. Kessler has not returned calls for comment.

• The largest debt is $2.9 million to Provident Bank. Also listed is a debt of $843,856.63 to Paul Michels Paving of Fort Mitchell, the first company to file a lien against the baseball ownership group.

Last month Provident Bank sued the team's ownership group and Hildebrant in Hamilton County Common Pleas Court alleging they defaulted on two loans, one for $2.75 million and a second for $125,775.15.

Hildebrant and the baseball group were ordered to immediately repay the loans, interest on the loans and all fees under the loan agreement.

Florence also sued the team for violating its lease with the city and asked the judge to evict the team and order the owners to complete the stadium. That suit is now on hold, said Peter Koenig, who is representing Florence.

The city has been negotiating with the team's owners, the league, the contractors and Provident Bank for the last month, he said.

"The city is optimistic that this filing won't have a negative impact on the negotiations," Koenig said. "For the last month or so we have had a positive spirit of cooperation between (the parties)."

The bankruptcy filing will not stall the suit against Connie and Chuck Hildebrant, who guaranteed the lease and provided financial statements to back up that guarantee, he said.

The city contends in the suit that those documents were false. The city is asking for punitive damages from the Hildebrants.

Florence Mayor Diane Whalen said she is still hopeful that the team will play next year. "(The bankruptcy) could even in some way shape or form be positive if it brings all the parties into the same room to resolve this," Whalen said.

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E-mail cpeale@enquirer.com and bkelly@enquirer.com