With the surprise move of the Texas Rangers filing for voluntary bankruptcy yesterday in an effort to complete the sale to Chuck Greenberg and Nolan Ryan, creditors for Hicks Sports Group, the holding company for the Rangers will file a reply today at a 1:30pm CT hearing is scheduled in U.S. Bankruptcy Court for the Northern District of Texas in Ft. Worth, according to SportsBusiness Daily.
[With the move yesterday] creditor sources promise a major response, with one source saying, "This is now war." The creditorsâ€™ lawyers are in Texas to contest the filing, which would give the creditors around $230M, one source said. They had been seeking about $300M and had bargained up to around $280M. But the bankruptcy filing takes away the gains made at the negotiating table over the last few months.
The creditors were able to block the deal after HSG defaulted last year. But by throwing the team into bankruptcy, the idea is that the old contracts are invalidated. On the other hand, it is always possible the judge could agree with the creditors that a fair auction was not held and re-open the sale.
The report adds the Nolan Ryan will be in attendance at todayâ€™s hearing.
More news as it becomes available.
Breaking Down The Texas Rangers Move Into Voluntary Bankruptcy (includes bankruptcy petition)
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