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Creditors in Texas Rangers Sale Reject Latest Terms from HSG PDF Print E-mail
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MLB Club Sales
Written by Maury Brown   
Tuesday, 16 March 2010 08:52

Texas Rangers

With the April 1 closing date coming up fast on the calendar, the 40 creditors of Hicks Sports Group turned down the latest terms for the sale of the Texas Rangers, according to a report by Daniel Kaplan in Monday’s SportsBusiness Daily.

Under terms of the initial deal, $230M of the proceeds would flow to the lenders, with the remainder consumed by existing commitments and liabilities. The lenders want at least $300M. On the conference call late last week with MLB, which is acting as an intermediary between the lenders and HSG, the offer came up by $10M to $240M, one source said. However, another source said the offer was $275M, with $20M of that in an escrow account to be paid in seven months. Neither one meet the minimum of $300M the lenders are seeking.

Chuck Greenberg, the lead for the group bidding to purchase the clubs, continues to believe that the deal will occur at or around the April 1 closing date. The group is in the awkward position of being at the mercy of the process between HSG and the creditors.

Hicks defaulted last year on $525 billion of debt. He is working to avoid the embarrassment of a possible bankruptcy.

In related news, Kaplan reports that “a prospectus is expected to be sent out next week to potential buyers of the [NHL Dallas] Stars from Galatioto Sports Partners, the investment bank HSG retained to sell the club.”



Maury BrownMaury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He is available for hire or freelance. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network.

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