Chuck Greenberg, the head of the group purchasing the Texas Rangers, attended today’s Rangers Spring Training finale in Frisco, TX, where he was approached by the media regarding the sale of the club.
Greenberg said that based upon how the process is moving, the sales process should be done toward the end of April.
“The date is not a deadline or guarantee.” Greenberg said later after the game. “As always in a deal of this complexity, nothing is concrete. But, the principles continue to work together, and the various timetables all align for the closing to be the week of the 19th.
The sale from Hicks Sports Group to the Greenberg group, that also sees Hall of Famer and current Rangers president Nolan Ryan as a key member of the investors, has been mired by HSG being in debt to a group of 40 creditors for $525 million.
The delay has been centered around how much the lenders will collect from HSG post-sale, and how much HSG is willing to offer. The creditors are seeking $300 million while HSG now has well in excess of $240 million on the table, which does not include additional funds that are subsequently released from an escrow account that will be funded at the close of the sale to protect against breaches of representatives and warranties by HSG.
Added to the mix, there are negotiations between the creditors themselves as to how money will be dispersed between primary and secondary lenders. Monarch Alternative Capital, a hedge fund that is the primary lender who now owns $100 million of the $525 million of HSG debt is seeking the most out of the sale, and is said to be the focus of how of how much the secondary lenders are likely to gain. Rumor has it that when completed, Monarch would get back their entire $100 million. If so, Monarch would see pure profit from the sale of the NHL Dallas Stars, also owned by HSG and being sold to satisfy debt obligations.
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