Today, the Texas Rangers Baseball Partners announced a plan to facilitate the sale of the Texas Rangers to a group led by Chuck Greenberg and Nolan Ryan. The club and the land around the ballpark will be sold to the group for about $575 million. The sale is getting done through a voluntary pre-packaged bankruptcy process that will apparently satisfy the Hicks’ Sports Group massive debt to creditors — though the creditors were not made aware of this process before hand, and it is unclear whether or not they have legal grounds to block the process.
Hicks owes $525 million to 40 different creditors.
His creditors would be ignorant if they chose to block it. This way at least they know they would be able to get paid back. if Hicks had not chosen to do the pre-packaged bankruptcy he would just keep getting deeper in debt with no chance of paying back his creditors. Think Roger Dorn in major league II (Bonus points if you get this reference). I used to work for a bankruptcy law firm even though i have no law training you pick things up from your work enviroment.
His creditors would be ignorant if they chose to block it
So the creditors have always secretly accepted MLB/Greenbergs estimation of the assets worth and are choosing not to accept $$$ now but only after a longer bankruptcy proceeding? Please
There is no guarentee that the creditors would get $$$ now! Plus this is a way for hicks to lose his a$$ even more.
Not to lose his a$$. Typo.
Some clarification from Maury Brown. Apparently the debt and the $75 million to lien on the Rangers are covered by the proceeds of the sale. The Greenberg/Ryan group would still be on the hook for some deferred salary, but that looks to be it.
http://bizofbaseball.com/index.php?option=com_content&view=article&id=4394:breaking-down-the-texas-rangers-move-into-voluntary-bankruptcy&catid=70:mlb-club-sales&Itemid=157