Paul Allen to Turn Arena Over to Creditors

Paul Allen’s Oregon Arena Corp., which owns the home of the NBA’s Portland Trail Blazers, will be turned over to bondholders, wiping out his $48-million investment.

Allen, co-founder of Microsoft Corp., is Oregon Arena’s sole shareholder. His company filed for bankruptcy protection in February after mounting losses caused it to miss bond payments. Allen is the world’s fifth-richest person with a net worth of $21 billion, according to Forbes magazine.

Oregon Arena says it owes bondholders, led by Prudential Insurance Co., $192.3 million.