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On Eve of MLB Vote, Dispute Arises Over Removal of Aircraft Lease Agreement in Texas Rangers Chapter 11 Plan PDF Print E-mail
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MLB Club Sales
Written by Maury Brown   
Wednesday, 11 August 2010 22:38

Texas Rangers

JPMorgan Chase, one of the first-lien lenders in the Texas Rangers bankruptcy case has challenged a section of the Asset Purchase Agreement that was altered after the group led Chuck Greenberg and Nolan Ryan won at auction last week for the purchase of the club. The challenge will not prevent ownership transfer which is expected to made official by vote of MLB’s 30 owners on Thurs.

At issue are $1.9 million in aircraft lease payments that were removed from the APA after the auction. The motion by JPMorgan claims the Greenberg-Ryan group (Rangers Baseball Express), Texas Rangers Baseball Partners, and William Snyder, the CRO in the case, removed the lease terms with Hicks Sports Group in “a process that lacks transparency and ignores the rights and interests of (JPMorgan Chase).” The banking institution had asked for an emergency hearing on the matter on Weds. with Judge Michael Lynn.

In an objection filing, representatives for RBE said, “Put simply, a dispute about relatively small lease payments (totaling approximately 0.3% of the purchase price) that will not be made for three weeks or more does not create an emergency necessitating that the Court set a hearing on 12 hours notice.”

The court agreed adjourning “to a later date and will be re-noticed accordingly.”

More news as it becomes available

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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, as well as a contributor to FanGraphs and Forbes SportsMoney. 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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