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.”
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