At a bankruptcy hearing in Fort Worth, TX today, called by the creditors of Hicks Sport Group and the Texas Rangers, a lawyer for Tom Hicks told U.S. Bankruptcy Judge D. Michael Lynn that Hicks “just wasn’t willing” to continue to fund losses. In responce, lawyers for the creditors said that the $575 million “pre-packaged” plan to complete the sale of the Rangers that was unveiled yesterday, without advance knowledge to the creditors, has “many conflicts” and that there is a “higher bid out there.”
The U.S. Trustee has filed a brief requesting that Judge Lynn treat the case as a traditional bankruptcy. If the Judge were to accept that request, the creditors would need to approve the sale.
In keeping with baseball interests saying that the “pre-packaged” voluntary bankruptcy could be done in 45 days, Judge Lynn set a June 15 hearing date at which point, if he were to rule in favor of the plan a second hearing on July 9th would held to approve the plan. If he were not to rule in favor of the 'pre-packaged" plan, other aspects of the bankruptcy case would be discussed on July 9th.
According to the plan outlined by Hicks, along with the prospective investment group led by Chuck Greenberg and Nolan Ryan looking to complete the purchase, the sale of the Club and its lease of the Rangers Ballpark in Arlington, together with the separate sale of the land around the Ballpark, have an aggregate transaction value of approximately $575 million, and that the plan “provides sufficient sale proceeds for the Rangers creditors to recover 100 percent of the portion of HSG Sports Group’s debt that is guaranteed by the Rangers and for all Rangers creditors to be paid in full.”
If Judge Lynn were agree with the creditors that better bids are available through the process, the judge would open the process back up and bidders such as Jim Crane and Dennis Gilbert would be allowed to make offers on the Rangers assets.
The hearing lasted four hours, but that was just the first day. The second day of the hearing starts at 9:00am CT.
MORE ON THE BANKRUPTCY OF THE TEXAS RANGERS:
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