avodart overnight delivery buy beconase aq online in usa buying minipress using paypal life sciences for subjects allied to medicine can i buy domperidone uk uk version of digoxin celebrex cause weight gain cialis professional results forum seroquel highest dosage ordering metformin here in canada citalopram now to buy sinemet in uk is there a generic available for flomax valacyclovir 500 mg used information dilantin dose range protonix medication coupons where can i get cytoxan pills ampicillin over the counter drugs what does premarin do difference between synthroid and levothyroxine compare prices alli diet pill what is trental medicine cephalexin online australia levothyroxine weight loss side effects of procardia xl premarin sales data social anxiety forum free or low cost finast pseudoephedrine and levoxyl interactions ortho tri-cyclen generic 2013 drugs ortho tri cyclen birth control online uk rxlist cymbalta drug entocort to buy in england zovirax eye ointment leaflet list legitimate canadian pharmacies comprar haldol original en madrid levitra plus puissant aldactone canada head office prinivil pills buy suprax with visa what is nexium 20mg tablets buying orlistat in manchester cost of lozol altace free shipping buy female viagra quick cialis soft mg price furosemide lasix dosage pills at home that can get you high fertomid 20 mg bupropion xl buying online world select pharmacy complaints zovirax by mail order zithromax without rx buy inderal la yagara shop net flovent next day drug market order suhagra aldactone 40 mg pharmacy antabuse implant available uk no prescription doxycycline buy celexa mg canada retin-a 0,025 dosage too high sildenafil viagra generic paroxetine hydrochloride tablets 20 mg doxycycline 500mg for dogs over the counter xenical class action fosamax lawsuits buy trental online buy premarin online pharmacy kytril costco nizagara drugs for sale buy propecia tablets us lowest price brand viagra asacol cost how to make viagra at home with fruits cheap menosan pills mail-order lioresal asthma nhs guidelines diflucan online australia canadian pharmacy generic for valtrex walmart buy diclofenac gel 50 lipitor side effects muscle pain qual o melhor viagra cialis ou levitra stromectol mg tablet lowest price indinavir what is the correct dosage of lotensin allopurinol from europe serpina shop net bleeding after taking the morning after pill renova toilet paper case study erection packs 3 medication overnight delivery can i get lamisil cardura no prescription online pharmacies prix viagra 100mg pharmacie france bactrim ds dose for cellulitis flagyl er for daily use canada buy lisinopril with no rx cialis super active buy online ireland generic compazine paypal colospa reviews and dosage prevacid to buy in the canada without a prescription xenical in usa female viagra generico italiano tegretol retard price purchase acivir pills pills diabecon results forum most reliable place to buy nitrofurantoin online isoniazid with no rx mebendazole interactions drugs elimite 100 best brafix prices cost of plavix pills side effects of erythromycin stearate tablets stromectol pharmacy order amitriptyline and low blood pressure purchase generic antivert buy lady era online reviews what is confidor used for buy liv 52 singapore buy trazodone australia birth control pills period pain septic arthritis in dogs risperdal side effects mayo clinic revatio for discount cost of leukeran for cats paroxetine hydrochloride controlled release tablets side effects anxiety nhs treatment acai berry sales uk buy aciclovir tablets uk pharmacy insulin dependent diabetes and exercise we will rock you tour buy vermox tablets mexico norvasc discount coupons overseas pharmacy no prescription protonix buy actonel online cheap all types zoloft pills ordering phenergan uk long term side effects of topamax for epilepsy where can i buy cytotec in the philippines 2012 order retin-a online without a prescription celexa online shipping viagra jelly express canada is mail order indinavir safe cipla pvt ltd goa does olanzapine cause weight gain vermox in the uk 100 mg singulair uk online pharmacies zoloft no prescription domperidone tablets house sale villa la femara best non-perscription pharmacies suprax in croatia cheapest state to live in usa best overseas online pharmacy buy lanoxin astrailia diltiazem drug prices generic brafix in usa over the counter tretinoin canada propecia 1 mg 28 comprimidos high dose allopurinol gout lynoral for men sale in uk phenamax online in us singulair women buy can you buy emsam canada drug laws avapro discount voucher olanzapine from usa feldene order on web vytorin and grapefruit juice can you buy premarin mentax roche precio argentina aspirin in canada albendazole 400 mg side effects of ic paroxetine hcl nitrofurantoin 100mg price can you only get cialis jelly on prescription cialis soft tablets 150 mg para que es amantadina benicar 40 mg canada how to give depo medrol injection without script overnight allopurinol online chloramphenicol prices at costco what does vantin can you purchase clomid chloroquine next day chloramphenicol eye drops usa where to buy flying mounts alliance could best site to buy rumalaya forte sertralina english ireland pharmacy society where can i get abilify from atorlip-20 online buy cytotec online at canada pharmacy augmentin 625 generic name how to order benzac uk buy proscar without prescription cheap orlistat uk nitroglycerin australia price sarafem tablets 40mg menosan women buy synthroid 75mcg buy online with out prescription plendil shoppers drug mart buy kamagra online india generic viagra haridra online usa no prescription how many puffs in combivent inhaler sildenafil 100mg price albendazole in usa lipitor 10 mg cost asthma in children erection pills walgreens over the counter accutane alternative weight gain after stopping depo provera injection is wellbutrin xl generic can you get norvasc buy kytril in ireland seroquel 50 mg street price better than tretinoin 0,05 research grade alesse generic aspirin name buy valacyclovir hcl buy rimadyl online no prescription tetracycline fda approved to buy without prescription aygestin price altace for discount paroxetine cr prices motilium suspension children safe pariet no prescription generic singulair when does a man need viagra exelon verizon discount atorvastatin 40 mg recall 2012 tamoxifen tablets used vytorin drug oversea betneval pommade buy wellbutrin xl 300 mg online cid 29th december 2012 desi tashan buy differin gel uk we buy any car buy cheap order abana online naproxen what is ranitidine 150 mg side effects micronase india functioning of lok adalat in india zofran generic reviews ciplox usa seroquel uses medication brand medrol buy pariet generic for nolvadex no prrescription us online pharmacy no prescription gyne-lotrimin canadian pharmacy brahmi cheapest avapro glucophage prescription coupon mifepristone and misoprostol nhs mircette brand order ranitidine generic name lexapro next day delivery alli refill pack tamoxifen drug delivery cheap cialis/ viagra levitra lopid prices at costco exelon patch user reviews top 200 drugs 2011 pharmacy times can you buy nizoral shampoo over the counter know buy zofran usa is a generic version of viagra available order glucophage online uk canadian drugstore tampa fl glucophage 20mg tab bactrim dose for acne allopurinol tablets 300mg keppra australia celexa medication online procardia no prrescription where to buy advair diskus in canada safely what is the correct dosage of capoten brand protonix for sale chloramphenicol generic release date duetact delivery london alli refill coupon 2012 purchase pariet 20mg online midamor where to get doxycycline alcohol malaria ventolin inhaler dosage for children first signs pregnancy clomid free viagra sample pack uk online prescription drugs without rx endep 10 what is it used for worldwide pharmacy floxin advair diskus 500/50 coupon generic avalide safe no prescription celexa sale abilify pharmacies discount phenergan with codeine children dose buy entocort online overnight how to get voveran sr on line bactroban dosage too high generic dutasteride canada flagyl cheap australia pharmacy liquid differin review buy ventolin online overnight delivery femara generic equivalent phentermine canadian pharmacy no prescription what is atarax for dogs yasmin by mail order revia prices eulexin tablets us online best price for toradol furosemide 40 mg for sale brand viagra cost para que se usa el medicamento augmentin tomar clorfenamina embarazo long term use of trazodone side effects number pharmacies sri lanka duetact from usa brand advair diskus for sale atorvastatin and fenofibrate interaction what does cleocin t treat what is medrol prescribed for buy aricept fast shipping boots pharmacy opening hours christmas florida sinemet buy nexium online no prescription esomeprazole what does hydrochlorothiazide pills look like motilium 100 ml uses for bactroban ointment tenormin spain over counter femara online india canadian pharmacy rx world effexor weight gain why causes weight gain current price orlistat buy allegra inhaler canada viagraa ilman reseptia" provera without perscbion cialis soft discount no prescription starlix from usa fastest asacol uk delivery levitra dosage 5mg healthy weight management program generic aciphex release date what are some side effects of zoloft cheapest lynoral how to by aricept online buy generic plavix online india sarafem from usa pharmacy how can i make homemade viagra tetracycline cost in canada ortho tri cyclen lo buy online no prescription genuine viagra plus 100mg zyvox antibiotic linezolid cialis online in canada antibiotics without prescription uk buy strattera patch symptoms lexapro dose too high vasotec where can i buy it bupropion drug oversea vermox tablets buy zyvox in the uk now valtrex cheap uk what are the side effects of asacol generic yasmin plavix dose stemi artane 100mg tablet cheap bactroban 40 mg buy actos with drugs pioglitazone amlodipine besylate tablets viagra super active rx staxyn reviews vermox online coupon code can i order sumycin online can taking allegra cause weight gain pariet for sale online amoxicillin 875 mg how many days cialis without prescriptions canada cipro new zealand purchasing tadacip online uk buy generic arimidex online no prescription where can i buy isoptin in canada buy cheap procepia zofran 4mg tablets pregnancy online pharmacy australia free delivery fluoxetine pills side effects overnight controlled drug pharmacy Purchase viagra 10 mg where to buy alli diet pills learn generic coreg cr 40 mg order lamisil from india without prescription nolvadex buy online ireland dune mentat speech worldwide pharmacy crestor buy inderal online no prescription us ortho tri-cyclen acne reviews order penicillin online uk high off robaxin is tricor a prescription drug hoodia not generic can you buy shuddha guggulu pharmacy cheap buy cheap amoxil cafergot pills buy online ic clomiphene citrate 50 mg very cheap betnovate minocycline 5mg tablets prilosec for purchase korean ginseng capsules review buy viagra japan cialis jelly australia price neurontin with american express alphagan prescriptions brimonidine effects reviews on nymphomax cheapest drug pharmacy local generic celexa for sale on line buy levitra online 7 where can i buy acai berries in canada zyprexa prescription coupon what is clomiphene tablets benemid for sale australia v-gel online coupon code gyne-lotrimin order canada uk pharmacies online that sell luvox cheapest place to buy dutas apcalis jelly uk order allegra pill indocin low dose birth control how to get vasotec drug wellbutrin dose for add depo medrol generic cialis cheapest online buying viagra uk order silagra uk pharmacy buy proscar capsules is generic viramune available in usa diclofenac sodium 50mg over counter eurax tablets online risperdal capsules what is aspirin made of is there a generic for valtrex yet over the counter drugs similar to prevacid voveran sr prix en pharmacie en france drug market order orlistat purchase norvasc 5mg levitra with paypal payment lipothin dr oz amlodipine besylate 5 mg tagre 1 channel how i met your mother lexapro dosage 40 mg buy bentyl dicyclomine order trandate 120 mg prazosin ships from india current price alesse can you order finax ordering metformin online canadian mexico buy reglan pharmacy what does a prednisone 20 mg tablet look like colospa lawsuit acheter du nizoral vasotec roche precio argentina flomax new zealand best time to take nexium 40 mg vermox over counter walgreens fast elocon delivery accutane precio mexico cheap brand viagra 100 mg where to buy tamoxifen online bactrim medicine interactions xenical comprar barato brand levitra sale prescription 5mg cheapest motilium to buy research grade benicar ampicillin australia pharmacy where can i buy caverta what is the generic name for protonix buy dutas perth australia dramamine shopping what is the drug tenormin used for buy aciphex 20mg renagel uk xenical canada online what is lexapro used for in children is it illegal to buy kamagra in the uk buy mirapex boots pharmacy minoxidil 10 reviews vermox next day delivery etodolac 5mg tablets tretinoin cream buy online uk topamax discount vouchers zyvox pfizer lawsuit filed side effects of glucophage normal wellbutrin dose best price for real isoniazid methotrexate lawsuit class action buy amoxil 10 generic for allopurinol information side effects alesse pharmacy cod doctors luvox now co uk colchicine pas cher where to buy pills for yeast infection glucotrol xl for sale online mobic drug generic name where can i buy viagra online canada cheap generic styplon order renagel without rx best place to buy lasix in india buying unisom using paypal buy rumalaya online canadian alliance of physiotherapy regulators registration bipolar medication similar to lithium where is calangute beach cheap fluoxetine 40 mg is it illegal to order generic mycelex-g canadian pharmacy erection packs 2 fast nitroglycerin delivery generic proventil hfa inhaler augmentin 625mg price in malaysia betnovate n cream side effects purchase abilify on line in usa pharmacy does alli work overnight delivery canadian anafranil tablet kroger pharmacy 4 dollar drug list safe buy pilex online lukol generic reviews green tea with hoodia pills side effects side effects of dostinex medication viagra plus canada online no prescription buy generic prevacid with bonus side effects of tofranil in children best place to buy pariet in canada discount code for liverpool fc 2013 cheap xenical free delivery buy nolvadex 10 buy viagra online safely acne scar treatment after accutane trazodone drug oversea vasodilan tablets medicare part d plans that cover viagra motilium in usa brand viagra us pharmacy mail order voveran sr yasmin buy without prescription best place to buy glycomet buy seroflo hong kong 125mcg 25mcg can you buy avalide drugs discount arthrotec diclofenac misoprostol side effects apo-prednisone 5mg for dogs tofranil 10mg children side effects brand viagra 10 mg what is duphalac drugs chloroquine generic reviews what is pravachol taken for coversyl 4mg canada cialis professional generic uk alli discount prices nitroglycerin medication classification canadian pharmacy erexin-v cheap lexapro online no prescription how to order haridra v-gel for sale australia how can i get a prescription for antabuse dejar de tomar sertralina glucophage xr in canada diflucan over the counter in the uk lov cost duphalac rhinocort turbuhaler astrazeneca do you need rx celexa what is coreg medication can you take bactrim daily donde comprar ropa livestrong buy minocycline overseas how to order xalatan online effects of prednisone abuse 500mg viagra safe online pharmacies review buy aciclovir 15mg online famvir dosage for herpes buy keflex in singapore where to buy abilify online us generic differin chronological order norvasc refills prednisolone steroids side effects purchase clonidine 0.1 mg billig avodart online kaufen cialis super active 100mg cheap maxalt 50mg tablets generic benemid usa pharmacy benicar delivery london tricor dosage too high overnight paroxetine without where to buy xenical without a prescription buy canada no prescription for methotrexate craigslist edinburgh jobs phenergan 40 mg dose donde puedo comprar erythromycin use of viagra medicine a doctor s order is 0.125 mg of ampicillin prescription little blue pill pharmacy methotrexate audit pharmacy acquistare vpxl in italia comprar imuran portugal can i order nizoral no prescription in the usa where can i purchase trazodone augmentin bonus pills blopress weight gain evista weight gain news how do i buy liverpool fc tickets erythromycin drug schedule pfingstferien bayer 2013 thyroid medication levothroid finasteride 1mg from canada how hard is it to get a prescription for viagra is rapaflo better than flomax alli birth control online mexico cyklokapron perth australia best pharmacy to order eurax zyprexa overnight delivery lady era online cheapest bridge camera with lithium battery purchase nizoral uk legal buy mirapex online canada what is erexor drugs cialis super active sale tadalafil 20mg prescription side effects of lamisil 250mg tablets best weight loss pills uk boots can get trouble ordering viagra online prescription western drug cardizem forum view topic purchase periactin online keppra dosage instructions nitroglycerin medication heart can i make glyset xalatan weight gain canadian pharmacy carbozyne nizoral 2 for sale generic pulmicort safe norvasc common blood pressure medications eurax generic release date nitroglycerin tablets manufacturer india generic duphalac usa pharmacy donde puedo comprar differin pilex tablets review order thyroxine online buy trimox in australia luvox no prescription overnight delivery nitroglycerin with american express fluoxetine 20 mg without prescription tamsulosin 0.4mg price buy anafranil online cheap is there a difference between levothroid and levothyroxine kamagra cialis com hyzaar shopping buying hyzaar from canada no prescription purchase actos pills astelin australia pharmacy how long does it take for lisinopril cough to go away where do i flomax in india comprar dapoxetine online albendazole for men sale in uk v-gel sale bystolic dosage side effects antibiotic cost zyvox online vermox online without prescriptions methotrexate dosage buy minocycline in uk diltiazem online usa no prescription diclofenac potassium reviews 25mg viagra effective buy cheap tamoxifen pills elocon cream used babies zebeta for sale uk buy generic prozac online no prescription etodolac sa 500 mg tablet methotrexate injection cost without insurance generic form of clomid purchasing finpecia online uk zyrtec 10 mg krople dawkowanie professional sale generic levitra geriforte syrup sold over counter betnovate cream uk online triamterene for sale online buy feldene gel nexium tire reviews luvox uk brand name lipothin with raspberry ketone dr oz donde puedo comprar viagra argentina actoplus over the counter bromocriptine reduce prolactin switching from lexapro to celexa 2010 carbozyne online legally
Home MLB News MLB Club Sales

Like Shoot to Thrill - An AC/DC Tribute on Facebook!

An authentic tribute of AC/DC that covers the best of the Bon Scott era and the best of Brian Johnson's material

Who's Online?

We have 738 guests online

Atom RSS

feed-image Feed Entries
MLB Club Sales
News and information about the sale of all or part of any of the 30 Major League Baseball clubs.

Upon Further Review, Texas Rangers Bankruptcy "Plan" Could Move Forward Shortly PDF Print E-mail
User Rating: / 8
PoorBest 
MLB Club Sales
Written by Maury Brown   
Tuesday, 22 June 2010 19:19

Texas RangersAfter further inspection, press reports regarding a U.S. Bankruptcy judge’s ruling saying creditors had veto power over a “prepackaged plan” that would exit the Texas Rangers from voluntary bankruptcy may not be as detrimental as initially believed.

While Judge Michal Lynn said in his conclusion, “The court will not direct any changes to the Plan. However, unless the treatment of the Lenders is modified, the Plan (as modified to date) will not be confirmable absent acceptance by the Lenders, the only class of creditors that is impaired under the present iteration of the Plan,” he left the window open for TRBP to amend the Plan to address the needs of the Lenders, and setting up a situation where veto power could be revoked.

On page 28 of the ruling Lynn writes, “In the context presented to the court, this, in turn, presents the question of whether a plan providing for the sale of the Rangers, to leave the Lenders unimpaired, must give effect to sections 4.4.1(c)(i)(3) and 4.4.2(b)(i) of the Pledge Agreement. In other words, must the plan grant the Lenders an effective veto over any proposed sale of the Rangers? The court concludes section 1124(1) does not so require.”

Lynn said that the Plan needed to be modified to allow the creditors the same rights as Texas Rangers Baseball Partners.

“The Lenders, however, have rights vis-à-vis Debtor other than just payment of the $75,000,000 for which Debtor is obligated to them.30 Debtor is part of the HSG family of entities, and, as such, it has assumed obligations to the Lenders in addition to the guaranty. In order for the Lenders to be unimpaired, their treatment under a plan must recognize and preserve those rights.”

As part of the process of meeting the goals of Judge Lynn’s opinion, the Lenders and Rangers Baseball Express, LLC, the group led by Greenberg and Ryan have agreed to continued mediation. In Lynn's ruling it is noted that the court has appointed Russell F. Nelms to serve as mediator.

Texas Rangers Baseball Partners, released two statements regarding today’s ruling.

“We are pleased that the Judge remains committed to completing the sale of the Rangers expeditiously and we are confident that necessary changes to the plan can be made to achieve that outcome,” adding, “Texas Rangers Baseball Partners wants what is best for the Rangers and supports an independent review of the Greenberg-Ryan transaction.  During the review, Nolan Ryan and the Rangers management team will continue to direct and administer the Club under Mr. Hicks’ ownership.”

Major League Baseball also released a statement solidifying their position in support of the Greenberg/Ryan group.

“We are encouraged that Judge Lynn ruled that the Texas Rangers do not need to seek the maximum value for the team in the current bankruptcy case. We also remain confident that the procedure to be put in place to evaluate the plan previously submitted to the court for the sale of the team will permit the sale on a timely basis to the team’s chosen bidder, the Greenberg-Ryan Group.”

A statement by Rangers Baseball Express, the propective investor group led by Chuck Greenberg and Nolan Ryan were expected to release a statement shortly.

In keeping with trying to have the sale completed as hastily as possible to allow the club to be active at the trade deadline, Judge Lynn made it very clear that he wanted the case wrapped up by July 31,

READ THE 28 PAGE OPINION FROM JUDGE LYNN

EDITOR'S NOTE: Maury Brown will be on KTCK The Ticket in Dallas (1310AM and 104.1FM) following the conclusion of Tuesday’s Rangers game to talk today’s events.

RELATED CONTENT:


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 Forbes SportsMoney blog. 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.

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
Judge's Ruling in Texas Rangers Bankruptcy Case Could Pave Way for Lenders to Block Sale PDF Print E-mail
User Rating: / 23
PoorBest 
MLB Club Sales
Written by Maury Brown   
Tuesday, 22 June 2010 14:16

Texas RangersUPDATE #2: Adds statement by Texas Rangers Baseball Partners

UPDATE #1: Paragraph added regarding mediation. Paragraph added to address non-comments.


THIS IS BREAKING NEWS...

The bankruptcy judge in the voluntary bankruptcy case of the Texas Rangers may have dealt a blow to the prospective ownership group led by Chuck Greenberg and Nolan Ryan by ruling that secured creditors of the Texas Rangers are “impaired” and therefore are allowed to vote whether to accept or reject a “prepackaged plan” designed by the Rangers to exit the club from Chapter 11 bankruptcy and complete the sale. The creditors have said repeatedly that they would reject the prepackaged plan.

In his opinion U.S. Bankruptcy Judge Michael Lynn wrote, “Even if the Plan had not been modified, the court could not agree with Debtor. Under the Partnership Agreement, Debtor’s governing document, sale of the Rangers is a “major decision.” Partnership Agreement § 4.3(b). A major decision cannot be taken except with approval of a majority of the partners.”

Lynn added in his conclusion,” The court will not direct any changes to the Plan. However, unless the treatment of the Lenders is modified, the Plan (as modified to date) will not be confirmable absent acceptance by the Lenders, the only class of creditors that is impaired under the present iteration of the Plan. See Code § 1129(a)(10). If the Plan is modified to conform the Lenders’ treatment to Code § 1124(1), as construed in this memorandum opinion, the Plan will be confirmable if it meets the other requirements of section 1129(a) and is accepted in its modified form by the Rangers Equity Owners.”

On the face of the ruling, it is seen as a victory for the creditors. Said source close to creditors to Daniel Kaplan of the SportsBusiness Journal, "This is great news… means plan is not confirmable."

However, lawyers for Texas Rangers Baseball Partners were closely examining the complex ruling to see if that may not be the case.

Shortly after the ruling, TRBP released a statement saying, “We are pleased that the Judge remains committed to completing the sale of the Rangers expeditiously and we are confident that necessary changes to the plan can be made to achieve that outcome.”

The next step in the process is mostly likely mediation. The Lenders and Rangers Baseball Express, LLC, the group led by Greenberg and Ryan have agreed to continued mediation. In Lynn's rulling it is noted that the court has appointed Russell F. Nelms to serve as mediator.

At the minimum, the ruling seems destine to derail any key player moves by the Rangers by the trade deadline. Rumors have swirled that either Roy Oswalt or Cliff Lee could be in the plans for the Rangers, should the prepackaged plan have been given the green light.

As of publication, Major League Baseball had not determined whether to release a statement. The Greenberg/Ryan group was still taking stock of the ruling and declined comment for the moment, as well.

READ THE 28 PAGE OPINION FROM JUDGE LYNN

RELATED CONTENT:


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 Forbes SportsMoney blog. 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.

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
Setting the Table? Judge in Texas Rangers Case Approves Disclosure Statement PDF Print E-mail
User Rating: / 8
PoorBest 
MLB Club Sales
Written by Maury Brown   
Tuesday, 22 June 2010 00:15

Texas RangersUPDATE: According to the court schedule, the status conference for the Texas Rangers voluntary bankruptcy case is scheduled for 1:30pm CT


The judge overseeing the voluntary bankruptcy proceedings of the Texas Rangers has ruled in favor of the disclosure statement filed by Texas Rangers Baseball Partners and has set a July 9 confirmation date that could approve a Prepackaged Plan filed by TRBP that would move them out of Chapter 11 status.

U.S. Bankruptcy Judge Michael Lynn ruled that nine Classes of unsecured creditors are deemed to be unimpaired and therefore have no voting rights as to whether to approve or deny the prepackaged plan designed to pay all secured and unsecured debt of the Rangers.

The ruling is seen as setting the stage for a status confernece on Tuesday in which Lynn could rule as to whether the three key remaining classes that comprise the first and second lien holders, as well as the Texas Rangers Baseball Partners Equity Interests have voting rights, as well.

The ruling Monday on the disclosure statement (see Monday’s ruling along with the disclosure statement) goes on to say that the three Classes not addressed in today’s ruling have the right to vote whether to approve or deny the prepackaged plan but that the judge has the right to overrule those votes if he deems them to be unimpaired. It is possible that Lynn could make that determination on Tuesday.

Texas Rangers Baseball Partners, which includes the current owners of the Texas Rangers Baseball Club, and Rangers Baseball Express, the local investor group led by Pittsburgh sports attorney Chuck Greenberg and current team president and Hall of Fame pitcher Nolan Ryan, is providing a gross amount of $255.8 million to Hicks Sports Group’s lenders through the Prepackaged Plan. Hicks Sports Group, the holding company for the Texas Rangers is $525 million in debt. Its creditors claim that they can garner more from the sale if it is opened up to other bidders, specifically Houston businessman Jim Crane. Lynn said in a hearing last week that it was not incumbent for the highest bid to be accepted, rather than the outstanding debt against the Texas Rangers assets be addressed.

Last Tuesday, Martin Sosland, a lawyer for the Rangers said after going over details on the bankruptcy code brought of the value of the lien against the club, "They're entitled to $75 million, and they go away," Sosland said.

Judge Lynn sided with Sosland saying, "I'm inclined to agree with your position on the maximization of value. At this point, you're ahead on that one."

MORE DETAILS ON TUEDAY AS THEY BECOME AVAILABLE

RELATED CONTENT:


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 Forbes SportsMoney blog. 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.

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
Prepackaged Plan Amended to Address Unsecured Lenders in Texas Rangers Case PDF Print E-mail
User Rating: / 14
PoorBest 
MLB Club Sales
Written by Maury Brown   
Friday, 18 June 2010 01:21
Lenders Proceeds
Select the image above to see how much
money is going to lenders as part of the
"prepackaged plan" for the Texas Rangers
NOTE: The DIP Facility figure should
read $21.5 million as it increased during
a hearing earlier in the month

An amended version of the “prepackaged” plan for the sale of the Texas Rangers in bankruptcy court was filed on Thursday to address unsecured creditors, such as former Rangers SS Alex Rodriguez. The changes address the addition of interest on the amount owed them.

In a separate summary document filed Thursday, exact details as to how much cash the Greenberg/Ryan group would be paying, the amounts going equity holders, and finally, the gross amount the Hicks Sports Group lenders would receive, was filed.

The total cash amount for the Rangers assets, not including a separate transaction for approx. 154 acres of land around the Ballpark at Arlington is $287.6 million. After debt, such as loans by MLB to allow the club to continue to function while in Chapter 11 are paid first, the lenders will receive a gross amount of $209.1 million. Leading up to the voluntary bankruptcy of the Rangers, the creditors had been steadfast in accepting no less than $300 million.

In a related matter on Thursday, U.S. Bankruptcy Judge D. Michael Lynn, said that the Rangers may continue to use Perella Weinberg Partners as an investment banker and Weil Gotshal & Manges LLP as legal counsel. The US Trustee, the arm of the Justice Department  that has oversight in bankruptcy matters has claimed that there is a conflict of interest in those two firms working with the Rangers given that they had worked with Tom Hicks prior.

“Any further advisements Weil Gotshal feels it should be making should be made one week from today,” Lynn said. He added that if the firm fails to disclose something, it does so “at its own peril.” (Bloomberg Businessweek)

On Tuesday, Lynn is expected to rule on the prepackaged plan. If he rules in favor of the plan, a July 9 confirmation hearing would set the stage for MLB’s 30 owners to approve the sale to the Greenberg/Ryan group shortly thereafter.

The only possible action by the lenders at that stage would be to ask for a stay on the sale. If no stay is granted, the lenders could seek an appeal, but the process of awarding the club to the Greenberg/Ryan group would still occur. Odds of a stay, which would be granted by Judge Lynn, are seen as exceptionally small.

RELATED CONTENT:


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 Forbes SportsMoney blog. 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.

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
Judge Expected to Rule in Texas Rangers Bankruptcy Case on Tuesday PDF Print E-mail
MLB Club Sales
Written by Maury Brown   
Thursday, 17 June 2010 13:55

Texas RangersA U.S. bankruptcy judge was expected to rule Tuesday, June 22 whether a “prepackaged plan” presented by Texas Rangers Baseball Partners, which includes the current owners of the Texas Rangers Baseball Club, and Rangers Baseball Express, the local investor group led by Pittsburgh sports attorney Chuck Greenberg and current team president and Hall of Fame pitcher Nolan Ryan, will be satisfactory to remedy secured and unsecured debt tied the assets around the ballclub.

U.S. Bankruptcy Judge Michael Lynn heard arguments on Tuesday from lawyers for the Rangers and Major League Baseball, as well as lawyers from a group of 40 creditors that are owed $525 million when Hicks Sports Group, the holding company for the Rangers, as well as the NHL Dallas Stars, fell into debt.

The “prepackaged plan” (see details on the prepackaged plan) was reached, without creditor visibility. The creditors claim that they can garner more from the sale by reopening the bidding to Houston businessman Jim Crane.

During the hearing on Tuesday, Judge Lynn said from the bench that garnering the highest bid through the bankruptcy process was not necessary.

Martin Sosland, a lawyer for the Rangers said after going over details on the bankruptcy code that are based upon the lien against the club, "They're entitled to $75 million, and they go away," Sosland said.

Judge Lynn sided with Sosland saying, "I'm inclined to agree with your position on the maximization of value. At this point, you're ahead on that one."

It will be up to Lynn to see if, based upon the Plan, the creditors are impaired in any of the 12 Classes of Claims that are part of the bankruptcy code.

Lynn has said that he sees the holding companies of the Rangers, not the Rangers themselves as a more appropriate avenue for the creditors to extract what they are owed.

If Judge Lynn finds that there are no Class impairments, the creditors in the case would have no voting right to block the Prepackaged Plan, and the Rangers would be allowed to exit Chapter 11 bankruptcy.  At that point, they could move to appeal the case to a federal court within the district, but any appeal would become "moot" as Texas Rangers Baseball Partners can still consummate the sale/Plan over an appeal. The only way for the creditors to prevent that from happening wuld be by having the judge issue a stay on the Plan, but that action is seen to be rare.

If all legal avenues are exhausted by the creditors, baseball's 30 owners would need to approve the sale. Commissioner Selig has said the owners and league support the Greenberg/Ryan group and would move to vote for their approval shortly after the legal process was completed.

RELATED CONTENT:


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 Forbes SportsMoney blog. 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.

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
Chuck Greenberg Pleased with Texas Rangers Bankruptcy Hearing PDF Print E-mail
User Rating: / 6
PoorBest 
MLB Club Sales
Written by Maury Brown   
Wednesday, 16 June 2010 00:15

Texas RangersOn Tuesday, a U.S. bankruptcy judge rendered no decision at a hearing that will determine the outcome in moving the Texas Rangers out of Chapter 11 bankruptcy, but not before making statements from the bench that appeared to side with the Rangers and MLB in their efforts to sell the club to a group of investors led by Chuck Greenberg and Nolan Ryan.

U.S. Bankruptcy Judge Michael Lynn listened to arguments that it was irrelevant whether creditors could garner more money if the process was opened back up to allow former bidder Jim Crane back into the mix.

Martin Sosland, a lawyer for the Rangers said after going over details on the bankruptcy code that are based upon the lien against the club, "They're entitled to $75 million, and they go away," Sosland said.

Judge Lynn sided with Sosland saying, "I'm inclined to agree with your position on the maximization of value. At this point, you're ahead on that one."

Roughly midway through the hearing, Lynn said repeatedly that it seemed that holding companies of the Rangers, not the Rangers themselves, should be at the center of any claims by creditors.

In going after the Rangers, as opposed to the holding companies, Judge Lynn said at one point to lawyers for the creditors, "Your horse is dead."

Chuck Greenberg said after the hearing that he was pleased with the proceedings.

“The judge reiterated his belief that the best interests of the Rangers are served by concluding the bankruptcy as soon as practicable,” said Greenberg. “He also restated his intentions to hold a confirmation hearing starting on July 9, and we’re pleased that the timetable that we desire in order to serve the best interests of all concerned, including Rangers fans, is still on target.”

Lynn has set a Tuesday status conference surrounding the involuntary bankruptcy petition filed by creditors against Rangers holding companies, which includes Rangers Equity Holdings, L.P., and Rangers Equity Holdings GP, LLC, both under HSG.

The July 9 confirmation hearing is still in place where concerns surrounding claims of breach of documents, such as claims of improper lease transfer of the Ballpark at Arlington could take place. Lawyers for the Rangers have said that these moves are inmaterial as there is no monetary gains to be had fhough such actions.

Judge Lynn is expected to render a decision next week on the “Prepackaged Plan” by Texas Rangers Baseball Partners, which includes the current owners of the Texas Rangers Baseball Club, and Rangers Baseball Express, the local investor group led by team Ryan and Greenberg is at the center of the involuntary bankruptcy case that is before Judge Lynn. That Plan was reached, without creditor visibility, and claims to remedy all secured and unsecured debt tied to just the Texas Rangers assets. It will be up to Lynn to see if, based upon the Plan, the creditors are impaired in any of the 12 Classes of Claims that are part of the bankruptcy code (see details on the prepackaged plan).

A report by the Star-Telegram adds clarity as to how the process moves forward over the next few days:

Lynn said he would soon permit mail-in balloting by some classes of creditors on the pre-packaged bankruptcy plan that includes the $575 million sale to the Greenberg-Ryan group.

But the federal judge said he could still rule that the lenders were not damaged by the bankruptcy, rendering the vote meaningless. Attorneys said voting could be as early as next week.

If Judge Lynn finds that there are no Class impairments, the creditors in the case would have no voting right to block the Prepackaged Plan.  At that point, they could move to appeal the case to a federal court within the district, but any appeal would become "moot" as Texas Rangers Baseball Partners can still consummate the sale/Plan over an appeal. The only way for the creditors to prevent that from happening wuld be by having the judge issue a stay on the Plan, but that action is seen to be rare.

RELATED CONTENT:


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 Forbes SportsMoney blog. 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.

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
Inside the Texas Rangers Bankruptcy Hearing PDF Print E-mail
User Rating: / 17
PoorBest 
MLB Club Sales
Written by Maury Brown   
Tuesday, 15 June 2010 11:36

Texas Rangers

UPDATE (4:51pm ET) - In a "Closing Bell" report on the Sports Business Daily, Bill Siegel, a bankruptcy attorney with Cowles & Thompson, suggested that if Judge Lynn sides with the Rangers, but sees that the holding companies of the Rangers, such as Hicks Sports Group, could be a more correct target, an emergency filing to stay on the sale to a nearby federal district court

UPDATE (4:10pm ET) - Judge Lynn says to the creditors regarding going after the Rangers instead of Hicks Sports Group, the holding company of the Rangers, "Your horse is dead." (via Kaplan tweet)

UPDATE (4:00pmET) - Judge Lynn says at today's bankruptcy hearing that the creditors have better argument against Hicks Sports Group, than the Rangers, itself.

UPDATE (3:35pm ET) - Daniel Kaplan of the SportsBusiness Journal is live tweeting the hearing. One example... Judge Lynn says, "The Rangers need to be out this room just as soon as possible." Such a comment would seem to lean toward approval of the prepackaged plan. But, as has been the case many times before, matters can change over the course of a long day of arguments.

UPDATE (3:30pm ET) - As we outlined below, the creditors filed correspondences around Jim Crane having a better offer for the Rangers, but that the dates of the emails were before the Greenberg/Ryan group entered into an exclusive negotiating window, and from that point the offer bid increased. Lawyers for MLB ripped the creditors for the Exhibts saying, "In any case, the only concrete negotiations that did take place after December 15 -- as indicated by the very e-mails the Lenders cite -- produced an improvement in Baseball Express's already winning bid," MLB said in Monday's filing.

UPDATE (3:15pm ET) - According to Daniel Kaplan of the SBJ (via Twitter), "Judge in Rangers bankruptcy case says he seriously doubts he will appoint a trustee to find other offers for the team."

UPDATE (3pm ET)The Associated Press is reporting that during arguments being made by lawyers for the Texas Rangers that “U.S. Bankruptcy Judge D. Michael Lynn said he tended to agree with the Rangers' argument, saying there were ‘considerations behind (financial) value that will play a role’ in the sale.”

In what could be related news, the SportsBusiness Journal is reporting that a court-ordered mediation session scheduled for Thursday between the Rangers interests and the creditors for Hicks Sports Group has been canceled.  As reported by Daniel Kaplan, “Why the mediation has been canceled is unclear, though it could mean the judge realizes the results of the hearing will be decisive enough to render mediation moot.”

Lawyers for the creditors of the Rangers will make their arguments later in the day.

More information as it becomes available


In a Ft. Worth bankruptcy courtroom today, arguments will be heard as to whether a “prepackaged plan” put together by Texas Rangers Baseball Partners, will be sufficient to U.S. Bankruptcy Judge D. Michael Lynn to satisfy debt surrounding the Texas Rangers assets of Hicks Sports Group, which has fallen $525 million in debt. Here’s a breakdown as to how arguments will play out:

Class(es) Are In Session

A “prepacked plan” is designed to address outstanding debt in a Chapter 11 proceeding by having the reorganization prepared in advance. In the normal course of events, this is done with cooperation of the creditors to help expedite matters, and get the distressed company out of Chapter 11 as quickly as possible.

But that’s not the case with the Texas Rangers.

The debtor, in this case Texas Rangers Baseball Partners, which includes the current owners of the Texas Rangers Baseball Club, and Rangers Baseball Express, the local investor group led by team president Nolan Ryan and Chuck Greenberg, is saying that based upon technicalities within the bankruptcy code, all debt to the creditors of the Rangers will be satisfied, and therefore have no vote to reject the prepackaged plan. The case will be made by lawyers for TRBP that 12 Classes of Claims are “unimpaired” and therefore, the creditors have no voting rights to block the sale to the Greenber/Ryan group.

(See the prepackaged plan for the Texas Rangers)

Those 12 classes are:

  • Class 1 - Priority Non-Tax Claims
  • Class 2 - First Lien Holder Claims
  • Class 3 - Second Lien Holder Claims
  • Class 4 - MLB Prepetition Claim
  • Class 5 - Secured Tax Claims
  • Class 6 - Other Secured Claims
  • Class 7 - Assumed General Unsecured Claims
  • Class 8 - Non-Assumed General Unsecured Claims
  • Class 9 - Emerald Diamond Claim
  • Class 10 - Overdraft Protection Agreement Claim
  • Class 11 - Intercompany Claims
  • Class 12 - TRBP Equity Interests

On the flip side, lawyers for the creditors will argue that they are impaired, and thusly, deserve the right to vote whether to approve the deal. For example, they will challenge Class 1 and 2. In a joint brief by the creditors, they claim, “Payment in full does not leave a class of claims unimpaired if material defaults or covenant breaches under the contract governing such claims remain uncured. The Debtor’s apparent contention to the contrary is incorrect as a matter of law.” They then go on to add:

Because the Debtors insist that there are no other impaired classes of claims under the Plan, in order to comply with section 1129(a)(10) of the Bankruptcy Code and confirm the Plan, the Debtor will need an affirmative vote of either Class 2 or Class 3. See 11 U.S.C. §1129(a)(10). As the Lenders will vote to reject the Plan, the Plan is patently unconfirmable.

If Judge Lynn agrees with the creditors, then the prepackaged plan will not be approved, and with it, the process changes.

Opening Up the Bidding

If, at the end of the day, Judge Lynn rules that the creditors are indeed impaired, the creditors will make an argument that there are better offers out there for the Rangers, namely through Houston businessman Jim Crane. Since it is the duty of the bankruptcy court to try and satisfy as much of the debt as possible, Judge Lynn is likely to hear that the process became “closed” when HSG entered into an exclusive agreement for the sale of the club assets to the Greenberg/Ryan group through what is called an Asset Purchase Agreement (APA).

Lawyers for the creditors will show examples of emails between correspondence between Glenn West, legal counsel to HSG, and a lawyer for J. P. Morgan, the creditors’ representative. In one correspondence West writes, “Crane now has a clearly superior economic deal — and may always have had based on Greenberg’s current position.”

At issue will be whether the timeframe of the emails makes them relevant. The majority of correspondence regarding a more lucrative bid by Crane comes before the January 23 Asset Purchase Agreement was reached. From that point, HSG continued to leverage the Greenberg/Ryan group into increasing their offer.

On Friday, TRBP filed a Brief saying:

“TRBP entered into the APA with the best bidder for the Texas Rangers franchise, that is, the bidder that offered the best combination of price and least execution risk. Although the Lenders may speculate that there is a bidder that will pay marginally more for the Texas Rangers franchise, such a bidder faces significant execution risk, including (1) negotiating an acceptable asset purchase agreement; (2) reaching agreement with any non-debtor that will contribute assets as part of the asset purchase agreement; (3) a potential uphill battle to obtain MLB consent (or litigation with MLB regarding its consent rights); and (4) potentially greater financing uncertainty than the Purchaser.”

Judge Lynn will need to weigh whether opening up the bidding truly extracts the most for the creditors with the least risk.

The 800lbs Gorilla in the Room: Consent Rights

Looming over the entire case is whether sports leagues have the right to select bids for franchises that may offer less money to creditors in cases where they have fallen into bankruptcy. The final hurdle in nearly every instance by sports leagues is majority vote that approves ownership transfer.

In the case of the Rangers, 75 percent of the league’s 30 owners must approve the transfer, and in regards to the Texas Rangers, they have solidly backed the Greenberg/Ryan group over Jim Crane due to the makeup of the Greenberg/Ryan group, as well as the fact that Crane backed out of the sale of the Houston Astros several years ago at the 11th hour.

In a worst case scenario, Judge Lynn could open up the bidding process, and through a court controlled sale, find Crane to have a better offer to satisfy the creditors. Major League Baseball will see matters differently, and reject the sale based upon wishing to have, what they see as better stewards of the Rangers, as well as owners that will better represent league interests on other matters that effect the whole of the league.

If MLB rejects the sale based on consent rights, the Rangers sale will become a landmark case that will move forward in the courts challenging league rights as to who they wish to have as part of their ownership ranks.

There have been two precedent setting sales that bolster MLB’s position.

In 2002, MLB sold the Boston Red Sox to a group headed by then Florida Marlins owner John Henry for $700 million and approved by the Jean R. Yawkey Trust. In that sale, both Miles Prentice and Charles Dolan offered up higher bids ($755 million by Prentice and $750 million by Dolan). Controversy ensued as to whether the sale garnered the most for the Trust, and whether the Henry group received favorable consideration to allow Jeffery Loria to sell the Montreal Expos to MLB, and then purchase the Marlins from Henry.

More recently, the NHL Phoenix Coyotes were placed into bankruptcy by owner Jerry Moyes. In that instance, Moyes partnered with Canadian billionaire Jim Balsillie who had designs on purchasing the club and relocating them to a suburb of Ontario, Canada for $242.5 million, while the NHL was offering $140 million, a fraction of that to keep the club in Arizona. In this case, the bankruptcy judge “punted” on his ruling rejecting both the Balsillie offer and a counter offer by the NHL.

As Judge Baum wrote of the Coyotes bankruptcy case, “Generally it is relatively easy to determine how to adequately protect economic interests. In this court’s view, determining how to adequately protect non-economic interests, particularly the interests claimed here by the NHL is exceedingly more challenging... The very nature of professional sports requires some territorial restrictions in order to encourage participation in the venture and to secure to each venturer the legitimate fruits of that participation.”

In his conclusions Baum wrote:

“[T]he court can not approve the bids by (Balsillie) and the NHL. Therefore, (Balsillie's) bid is denied, with prejudice because the interests of the NHL can not be adequately protected as required by Section 363(e) if the sale to (Balsillie) were approved. The NHL’s bid is denied, without prejudice. As stated…, the NHL can probably cure the defect in its bid if it elects to make the required amendment(s)”

The sale eventually moved to the NHL.

"Once that bid [by Balsillie] was rejected, this (the NHL's) bid became the new reality," said Steve Roman, a spokesman for Moyes.

In terms of the Texas Rangers, there is no relocation in play. Judge Lynn would need to look at how league consent, by itself, factors in.

When Will Judge Lynn Rule?

Expect the hearing today in Ft. Worth to go well into the night. While it is possible that Lynn will make a ruling this evening, it is more likely that it will be made on Weds.

RELATED CONTENT:


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 Forbes SportsMoney blog. 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.

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
Greenberg-Ryan Group Could Receive $10M If Other Bidders Land Texas Rangers PDF Print E-mail
User Rating: / 6
PoorBest 
MLB Club Sales
Written by Maury Brown   
Monday, 14 June 2010 15:50

Texas Rangers

The investment group headed by Pittsburgh sports attorney Chuck Greenberg and Hall of Fame pitcher and current president Nolan Ryan could receive as much as $10 million if they are not approved as owners in the sale of the Texas Rangers, according to court documents filed. The information from the filings was first reported in Monday’s edition of the SportsBusiness Journal.

As noted in the report, creditors of Hicks Sports Group, the holding company for the Rangers, would surely contest the breakup fee, while the Greenberg/Ryan group will contend that the amount covers the expenses tied to fighting the legal battle they are currently in the midst of -- costs no other bidders would need to absorb.

Tomorrow, U.S. Bankruptcy Judge D. Michael Lynn will hear arguments on whether a “pre-packaged plan” by the Greenberg/Ryan group might be accepted, or whether the bidding will open up and allow other potential owners such as Houston businessman Jim Crane, to engage in bidding for the club. The creditors have contended that Crane has a better offer on the table, while the Greenberg/Ryan group contends that based upon MLB approval, and bid price. In a separate filing, the Greenberg/Ryan group (Rangers Baseball Express) contends that “[Crane] will pay marginally more for the Texas Rangers franchise, such a bidder faces significant execution risk, including (1) negotiating an acceptable asset purchase agreement; (2) reaching agreement with any non-debtor that will contribute assets as part of the asset purchase agreement; (3) a potential uphill battle to obtain MLB consent (or litigation with MLB regarding its consent rights); and (4) potentially greater financing uncertainty than the Purchaser.”

The Brief in Opposition by the creditors, dated 6/11/10 shows:

On May 23, 2010, TRBP and the Greenberg Group terminated the January APA and immediately executed a new agreement (the “May APA”) that provides for materially worse terms for TRBP as compared to the January APA, including (1) a $10 million termination fee payable to the Greenberg Group if the transaction does not close (both agreements provide for only a $1.5 million deposit by the Greenberg Group if it cannot close); (2) a reduction in cash payable by the Greenberg Group; (3) a $30 million escrow for a one-year period (despite the Greenberg Group’s offer to reduce the escrow to $15 million for nine months in the April 2 proposal), as well as changes to make it easier for the Greenberg Group to claim against the escrow; and (4) substantially increased reimbursement for fees, including those incurred by BRE, which were not previously required.

The Brief also contends that the lease for Arlington Stadium was transferred improperly from Rangers Ballpark LLC to Texas Rangers Baseball Partners (the current ownership of the Rangers) “for no consideration.” The Brief adds that, “Such transfer was effectuated without an approval of the Collateral Agent, who was the only entity capable of granting such approval.”

The transaction from the Greenberg/Ryan group would keep Tom Hicks on as Chairman Emeritus holding a 1 percent minority stake in the Rangers. According to the filing, “Mr. Hicks would receive a one percent stake in the Texas Rangers, approximately $58 million, as well as ‘certain perquisites . . . customary to former owners . . . of professional sports teams’ including season tickets and parking passes, and the title of Chairman Emeritus for three years.”

An interesting point in the Brief outlines how much in initial payments the Greenberg/Ryan group would offer as part of the January 23, 2010 Asset Purchase Agreement (APA). While this figure has since changed over the course of the exclusive negotiating window with the group, it gives insight into how much cash would have been involved, if the APA had come to fruition without the legal snarlings that the Rangers are now in the midst of with the voluntary Chapter 11 bankruptcy proceedings.

The January APA paid the Lenders approximately $231 million cash at closing, with $30 million to be held in escrow (which might only become available to the First Lien Lenders more than a year after closing).

Along with the sale of the Rangers, a separate land transaction for approx. 154 acres of land surrounding the Ballpark is also in play with the Rangers sale. The sale price for the land was not made available to the public, but with the filing, details from the 1/23/10 APA shed some light on how much the Greenberg/Ryan group would be offering, as taken from the point of view of the Brief in Opposition by the Lenders:

Pursuant to the Land Sale Agreement, BRE agreed to sell its right, title and interest in certain real property surrounding the Ballpark at Arlington (the “BRE Property”). BRE stood to receive the following consideration in connection with the Land Sale Agreement: (i) $5,000,000 of cash, (ii) a $53,158,991.04 promissory note paying interest of 4.1% per annum, (iii) a 1% equity interest in Rangers Baseball Express, (iv) forgiveness of a $12,800,000 debt owed to Emerald Diamond, L.P. (“Emerald Diamond”), a guarantor under the Credit Agreements and (v) assumption of certain liabilities associated with or related to the BRE Property, and (vi) repayment of the Overdraft Protection Line of Credit.

Finally, for some time it was reported that the creditors saw a large gap that was preventing the deal from gaining full approval of the 40 creditors, with lead creditors Monarch Alternative Capital being the stumbling block. Reports had $270 million being offered while the creditors remained steadfast in saying they would accept no less than $300 million, a $30 million gap.

The Brief in Opposition adds that after the 1/23/10 APA was reached, the Greenberg/Ryan group continued making adjustments that would have gotten the gap to just $18 million.

On April 2, 2010, HSG and the Greenberg Group made an informal proposal (not reflected in any executable documents) regarding certain improvements to the January APA, which MLB calculated as providing $282 million of value to the Lenders. Although this was higher value to the Lenders, most of the improvements were economic concessions made by Hicks and his affiliates.

More news tomorrow as the hearing takes place. Expectation is that a ruling by the judge in which the process could be opened up to other bidders, or the "pre-packaged" plan could be approved. That ruling could take place late Tuesday, but most likely Weds. morning. If Lynn rules in favor of the Greenberg/Ryan group offer, the final approval of the "pre-packaged" plan by the group would occur at a seperate hearing on July 9th.

If the judge were to open the bidding up, it is expected to be a major legal challenge as to how sports leagues can select who can, or cannot, be owners, irrespective of bid price.

RELATED CONTENT:


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 Forbes SportsMoney blog. 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.

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
As Hearing Approaches, Focus on Texas Rangers Sale Centers Around "Better Offer" PDF Print E-mail
User Rating: / 6
PoorBest 
MLB Club Sales
Written by Maury Brown   
Saturday, 12 June 2010 13:34

Texas RangersOn Tuesday, a hearing could determine whether a “pre-packaged” plan by group of investors headed by Chuck Greenberg and Nolan Ryan will be approved by a bankruptcy judge, or whether the process will be reopened to other bidders, namely Houston businessman, Jim Crane.

The contention of creditors for Hicks Sports Group, who is the holding company for the Texas Rangers, is that Crane has had a better offer on the table than the Greenberg/Ryan group (Texas Rangers Baseball Partners) that would help absorb part of HSG’s $525 million in debt.

That contention was elevated in the press late Friday when The New York Times ran an article outlining correspondence between Glenn West, legal counsel to HSG, and a lawyer for J. P. Morgan, the creditors’ representative, saying, “Crane now has a clearly superior economic deal — and may always have had based on Greenberg’s current position.”

The article then goes on to say:

But Major League Baseball told H.S.G. that it had “our permission to negotiate only with the Greenberg group,” the filing says. In response, West wrote on New Year’s Eve to Thomas Ostertag, M.L.B.’s general counsel: “It appears Greenberg is using your position to simply refuse to negotiate in good faith; and the result will be a bad one for the team and our lenders (whose consent is absolutely required, just like yours, for whatever is ultimately done here).”

[...]

The creditors’ filing says that Crane’s offer was worth $13 million to $20 million more than the Greenberg-Ryan bid and that Crane told H.S.G. and M.L.B. that he would have gone still higher.

The key to the correspondence centers on the time in which the exchange occurred: December and mid-January. Why is the timeframe significant? Tom Hicks selected the Greenberg/Ryan group shortly thereafter and entered into an Asset Purchase Agreement (APA) that allowed the group to enter into an exclusive negotiating window where it is believed that the group increased their offer -- more than once -- during that window.

So, the question for the judge will be, is the correspondence cited by the creditors relevant?

On Friday, TRBP filed a Brief saying:

“TRBP entered into the APA with the best bidder for the Texas Rangers franchise, that is, the bidder that offered the best combination of price and least execution risk. Although the Lenders may speculate that there is a bidder that will pay marginally more for the Texas Rangers franchise, such a bidder faces significant execution risk, including (1) negotiating an acceptable asset purchase agreement; (2) reaching agreement with any non-debtor that will contribute assets as part of the asset purchase agreement; (3) a potential uphill battle to obtain MLB consent (or litigation with MLB regarding its consent rights); and (4) potentially greater financing uncertainty than the Purchaser.”

On the 15th in a Ft. Worth courtroom, U.S. Bankruptcy Judge Michael Lynn will hear arguments on the “pre-packaged plan”, that would allow for the Rangers to emerge from voluntary Chapter 11 bankruptcy with July 9th being the possible date that Lynn could rule to allow the transfer of the Rangers ownership to occur between HSG and TRBP, or whether the process is opened back up, thus allowing for Jim Crane to engage in the bidding process.

RELATED CONTENT:


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 Forbes SportsMoney blog. 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.

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
Creditors Move Rangers Holding Companies Into Involuntary Bankruptcy PDF Print E-mail
User Rating: / 1
PoorBest 
MLB Club Sales
Written by Maury Brown   
Saturday, 29 May 2010 10:34

Texas RangersLate yesterday, the creditors for the Texas Rangers worked procedural channels and pushed two holding companied under Hicks Sports Group, Rangers Equity Holdings, L.P., and Rangers Equity Holdings GP, LLC, into involuntary bankruptcy.

The petition was filed by several of the 40 primary and secondary lenders, including Monarch Alternative Capital. A statement, released through Perry Street Communications for the lenders, said, “Today's procedural developments, which were discussed as possible actions in Court on May 25, 2010, are intended to ensure that the bankruptcy proceedings meet the objective of maximizing value for all creditors.”

Texas Rangers Baseball Partners, by way of Kekst and Company, released a statement saying:

“The unsurprising action taken by the creditors involves holding companies that conduct no commercial business and have no employees or operating assets. It is nothing more than jockeying for position in an orderly process that was initiated on May 24th.  Following the court’s orders, the Rangers are conducting normal baseball and business operations and, importantly, the court has set a schedule that is consistent with our objective of completing the sale of the Rangers to the Greenberg-Ryan group by mid-summer. We do not believe this action by the creditors will affect that schedule.”

On Monday, Texas Rangers Baseball Partners, the current owners of the Texas Rangers Baseball Club, and Rangers Baseball Express, the local investor group led by team president Nolan Ryan and Chuck Greenberg, filed a petition to move the Rangers into voluntary bankruptcy in an effort to push through the$575 million sale of the Club and its lease of the Rangers Ballpark in Arlington, together with the separate sale of 154 acres of land around the Ballpark. The efforts, through a “pre-packaged” plan, is said to be designed to pay any secured and unsecured debt surrounding the Rangers assets.

(See the details of the “pre-packaged” plan filed as part of the voluntary bankruptcy proceedings)

In related news, the Rangers came close to missing operational payroll, something that has reportedly happened prior, but not since the Rangers have been locked in a stalemate with key creditors, Monarch Alternative Capital, Kingsland Capital Management, Sankaty Advisors and Galatioto Sports Partners, over the $575 million bid by a group led by Chuck Greenberg and Nolan Ryan to purchase the Rangers from current owner, Tom Hicks.

The Dallas Morning News first reported that John Blake, the public relations representative for the Rangers said Friday that “paychecks were cut and distributed. The club had been $3.8 million shy of the amount needed to meet payroll, he had said earlier. The overall total paid out was not released.”

According to sources close to the Rangers, the on-going process surrounding the bankruptcy is expected to have no impact on Rangers operations, including paying employees in the normal course of business. The court orders authorized earlier this week provide for pay to employees and use of the new $21.5 million credit facility provided by Major League Baseball.

RELATED CONTENT:


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 Forbes SportsMoney blog. 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.

Follow Maury Brown on Twitter Twitter

Follow The Biz of Baseball on Twitter Twitter

FacebookFollow the Business of Sports Network on Facebook

 
«StartPrev12345678910NextEnd»

Page 10 of 19
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?