SBJ: Rangers creditors offer team additional financing
Article By Unknown on 26th May, 2010
Daniel Kaplan, SportsBusiness Journal
Rangers creditors offered the team $40 million in financing today, a surprise move in bankruptcy court intended to in part remove Major League Baseball from the process.
The team needed financing in place by the end of the day Wednesday to meet payroll of $3.8 million, the team's attorney, Martin Sosland of Weil Gotshal & Manges, told the court in Fort Worth, Texas.
The Rangers filed for bankruptcy Monday after reaching a stalemate with creditors that refused to allow the team's sale to proceed because they think there is a higher offer. The Rangers' parent company -- Tom Hicks' Hicks Sports Group -- defaulted on its debt on March 31, 2009.
On Day 2 of the hearings in Fort Worth, which have lasted far longer than insiders expected, lawyers for the Rangers said they preferred debtor in possession financing offered from MLB, but the creditors, represented by Andy LeBlanc of Milbank Tweed, contested it by offering $40 million.
In response, MLB increased its financing from $11.5 million, which would have taken the club only through to August, to $21.5 million. And MLB agreed to lower its interest rate from 5.75 percent to around 1.5 percent, matching the creditors' loan proposal.
The reason the creditors wish to lend the money is they believe MLB's debtor in possession terms would facilitate the sale to Nolan Ryan and Chuck Greenberg, the buyers who have been trying to close on the team since January. Both men were in the courtroom. But the creditors told the court on Monday that they believe there are higher offers for the club, and want the auction re-opened.
In order to do that, they need time. The creditors' financing would match the $21.5 million and the rate, plus buy out what MLB is owed for funding payroll last year, thus removing the league as a creditor, though not necessarily as a party to t...
Read Complete Article at Latest Sporting News Articles for MLB
The team needed financing in place by the end of the day Wednesday to meet payroll of $3.8 million, the team's attorney, Martin Sosland of Weil Gotshal & Manges, told the court in Fort Worth, Texas.
The Rangers filed for bankruptcy Monday after reaching a stalemate with creditors that refused to allow the team's sale to proceed because they think there is a higher offer. The Rangers' parent company -- Tom Hicks' Hicks Sports Group -- defaulted on its debt on March 31, 2009.
On Day 2 of the hearings in Fort Worth, which have lasted far longer than insiders expected, lawyers for the Rangers said they preferred debtor in possession financing offered from MLB, but the creditors, represented by Andy LeBlanc of Milbank Tweed, contested it by offering $40 million.
In response, MLB increased its financing from $11.5 million, which would have taken the club only through to August, to $21.5 million. And MLB agreed to lower its interest rate from 5.75 percent to around 1.5 percent, matching the creditors' loan proposal.
The reason the creditors wish to lend the money is they believe MLB's debtor in possession terms would facilitate the sale to Nolan Ryan and Chuck Greenberg, the buyers who have been trying to close on the team since January. Both men were in the courtroom. But the creditors told the court on Monday that they believe there are higher offers for the club, and want the auction re-opened.
In order to do that, they need time. The creditors' financing would match the $21.5 million and the rate, plus buy out what MLB is owed for funding payroll last year, thus removing the league as a creditor, though not necessarily as a party to t...
Read Complete Article at Latest Sporting News Articles for MLB
Readers Comments
Related News
Featured Sponsors
Interested in getting MLB Tickets for this coming season? The New York Yankees are a professional baseball team based in the borough of the Bronx, in New York City, New York and are a member of Major League Baseball's American League East Division. Get your New York Yankees Tickets today!
The Baltimore Orioles Tickets are a professional baseball team based in Baltimore, Maryland. Since 1992, the Orioles have played their home games at Oriole Park at Camden Yards.
New York Mets Tickets: The New York Mets are a professional baseball team based in the borough of Queens in New York City, New York. The Mets are a member of the East Division of Major League Baseball's National League.
The Minnesota Twins are an American professional baseball team based in Minneapolis, Minnesota, and play in the Central Division of Major League Baseball's American League. Get your Minnesota Twins Tickets today!
The Toronto Blue Jays Tickets are a professional baseball team located in Toronto, Ontario, Canada.
The Seattle Mariners are an American professional baseball team based in Seattle, Washington. The Seattle Mariners Tickets are looking to be a good team this year.
Detroit Tigers Tickets: The Detroit Tigers are a Major League Baseball team based in Detroit, Michigan. One of the American League's eight charter franchises.
The Philadelphia Phillies Tickets are a Major League Baseball team based in Philadelphia, Pennsylvania. They are the oldest continuous, one-name, one-city franchise in all of professional American sports, dating to 1883. One of the biggest games of the season are the Phillies Red Sox Tickets. Another long time rival in the same state is Phillies Pirates Tickets.
The Chicago White Sox Tickets are a Major League Baseball team based in Chicago, Illinois. The White Sox play in the American League's Central Division.
The Atlanta Braves Tickets are a professional baseball team based in Atlanta, Georgia. The Braves are a member of the Eastern Division of Major League Baseball's National League.
The Texas Rangers are a professional baseball team in Texas, representing the Dallas-Ft.Worth metropolitan area. Get your Texas Rangers Tickets today!
San Diego Padres Tickets: The San Diego Padres are a Major League Baseball team based in San Diego, California.
Tampa Bay Rays Tickets: The Rays are a member of the Eastern Division of MLB's American League. Since their inception in 1998, the club has played at Tropicana Field.
The Florida Marlins were established in 1993 as an expansion franchise, the Florida Marlins Tickets are a member of the Eastern Division of Major League Baseball's National League.
San Francisco Giants Tickets are a Major League Baseball team based in San Francisco, California, who currently play in the National League West Division.
The Cleveland Indians are a professional baseball team based in Cleveland, Ohio. Cleveland Indians Tickets are in the Central Division of Major League Baseball's American League.
The Baltimore Orioles Tickets are a professional baseball team based in Baltimore, Maryland. Since 1992, the Orioles have played their home games at Oriole Park at Camden Yards.
New York Mets Tickets: The New York Mets are a professional baseball team based in the borough of Queens in New York City, New York. The Mets are a member of the East Division of Major League Baseball's National League.
The Minnesota Twins are an American professional baseball team based in Minneapolis, Minnesota, and play in the Central Division of Major League Baseball's American League. Get your Minnesota Twins Tickets today!
The Toronto Blue Jays Tickets are a professional baseball team located in Toronto, Ontario, Canada.
The Seattle Mariners are an American professional baseball team based in Seattle, Washington. The Seattle Mariners Tickets are looking to be a good team this year.
Detroit Tigers Tickets: The Detroit Tigers are a Major League Baseball team based in Detroit, Michigan. One of the American League's eight charter franchises.
The Philadelphia Phillies Tickets are a Major League Baseball team based in Philadelphia, Pennsylvania. They are the oldest continuous, one-name, one-city franchise in all of professional American sports, dating to 1883. One of the biggest games of the season are the Phillies Red Sox Tickets. Another long time rival in the same state is Phillies Pirates Tickets.
The Chicago White Sox Tickets are a Major League Baseball team based in Chicago, Illinois. The White Sox play in the American League's Central Division.
The Atlanta Braves Tickets are a professional baseball team based in Atlanta, Georgia. The Braves are a member of the Eastern Division of Major League Baseball's National League.
The Texas Rangers are a professional baseball team in Texas, representing the Dallas-Ft.Worth metropolitan area. Get your Texas Rangers Tickets today!
San Diego Padres Tickets: The San Diego Padres are a Major League Baseball team based in San Diego, California.
Tampa Bay Rays Tickets: The Rays are a member of the Eastern Division of MLB's American League. Since their inception in 1998, the club has played at Tropicana Field.
The Florida Marlins were established in 1993 as an expansion franchise, the Florida Marlins Tickets are a member of the Eastern Division of Major League Baseball's National League.
San Francisco Giants Tickets are a Major League Baseball team based in San Francisco, California, who currently play in the National League West Division.
The Cleveland Indians are a professional baseball team based in Cleveland, Ohio. Cleveland Indians Tickets are in the Central Division of Major League Baseball's American League.
