where can i buy dramamine thuoc cipro 500mg augmentin 1000 mg kullanimi buy biaxin overseas nombre viagra generico viagra 0.1 mg lasix comp 40 mg buy ampicillin bacterial infections cialis 5mg mexico praziquantel for dogs best price lisinopril 20 mg effects where do i clozaril in canada propranolol hydrochloride 10 mg amoxil bd 500mg 25mg viagra dosage buy hydroxyzine pamoate synthroid mcg mg mail order fluoxetine cialis genfar generico zovirax 250 mg vidal plavix tablete 75 mg russian pharmacy online uk lasix cheap online cipla suhagra-100 can i get minocin phone number search uk cialis generic thailand discount canadian meds buy diclofenac potassium uk generic mircette safe generic 25 mg viagra ortho tri cyclen lo purchase online viagra masculino generico suppliers of actos in us 10mg viagra enough where purchase l-tryptophan valtrex 500mg preis indinavir paypal cialis 50mg malaysia mail order rx pharmacy cheap maxaman no prescription no prescription cialis generic licensed pharmacy clozaril clomid 150mg worked generic lexapro reviews 2013 levitra 10mg agora generic augmentin dosage genuine proventil 100mg desi tashan star plus pratigya cialis mg5 lisinopril 2.5 mg generic danazol pharmacy order buying brand cialis purchase brand cialis in uk is aspirin a prescription drug kamagra 100mg effets voltaren prescription order viagra samples nolvadex lowest priceonline online viagra rezept priligy online andorra generic lexapro dangers ginseng tablets hydrochlorothiazide 75 mg ondansetron 8mg tablets side effects brand levitra from usa pharmacy compuesto generico viagra viagra genuine cheap female viagra 50mg purchase gold cheap kamagra jellyfish trusted rx today us acai now reviews venta de cialis en miami celebrex 200 mg daily donde comprar finasteride cialis generico 5mg finasteride propecia 1 mg diabetes medicine metformin side effects antivert chewable tablets walmart drug prices cialis why buy viagra beat way to order voltaren no prescription mirapex premarin 100mg cheap generic strattera online metformin 1000 mg makedonija stromectol direct pharmacy zenegra ships from india cheap cialis daily order cialis 5mg hydrochlorothiazide 12.5 mg walmart generic viagra manly lisinopril buy uk triamterene 37.5 25 mg tlilly cialis 100 mg propecia australia 5mg buy 150 mg viagra skelaxin pill shop discount code .2 mg propecia sides discount canadian pharmacy premarin buy flagyl without a prescription levitra tablets 20mg reviews on himalaya ayurslim capsule over the counter medicine that acts as brand cialis can trazodone hydrochloride get you high lipitor atorvastatin muscle spasms viagra 50 mg rezeptfrei generic lexapro sydney online pharmacy prednisone buy zanaflex with visa order cialis canada 500mg cipro strep generic erexor uk paypal is clomid generic cialis generic buy pastillas levitra 20 mg augmentin 1000 mg prospektus viagra buy oonline minomycin pas cher compare prices malegra dxt where can i get keflex pills sumycin discontinued online prescription viagra viagra online india prednisone 50 mg backache cialis 5 or 10 mg what is neurontin used for and what are the side effects cafergot 20 mg ohss clomid 50mg flomax costco cialis 50 mg 100 mg tadalafil online 12.5 mgs of zoloft 100mg clomid triplets non prescription dapoxetine what is precose pills used for no script trial erection packs 1 mg prednisone 5 mg dog acai 1000 mg reviews side effects of synthroid buy suhagra in singapore diflucan 150 mg pillola generic viagra hjl nexium buy uk nexium 20mg 40mg thuoc lexapro 10mg 20mg pink lisinopril buspar fast uk lexapro 20 mg coupon viagra generic meltabs buy zovirax aciclovir what dosage of depakote causes weight gain zithromax 500 mg azithromycin red viagra online new ed drugs on horizon what is xalatan isoniazid non perscription countries dramamine cruise reviews viagra online manly canadian adalat can order strattera online premarin comprare methotrexate drugs interactions cialis generic price is zithromax generic buy kytril uk generic online buy alesse zoloft 50mg topamax uk no prescription cialis 5mg forum xenical acquisto online kamagra jell 100 mg drugs similar to fluoxetine cheap phenergan ginseng pharmacy viagra no generica levothroid coupons how much will combivent cost side effects of depo provera weight gain prix doxycycline 100mg doxycycline monohydrate uses what is propecia finasteride over the counter medicine similar to viagra mexico pharmacies online that sell levitra professional does claravis work as well as accutane buy methotrexate capsules purchase levaquin 750 mg buy dilantin 100mg online actonel generic 150 mg side effects of diflucan 200 mg buy acivir pills 200 ranbaxy viagra 50 mg augmentin 400 mg junior side effects of atorvastatin calcium pliva 433 get you high lexapro 10 mg cena zithromax 250 mg sobres how to order rumalaya med cab levaquin amantadine generic cost viagra 10mg delhi best place to buy trazodone in mexico rio rico pharmacy rio rico az prednisone 5mg ear buying viagra brand generic viagra betrouwbaar clorhidrato de amantadina formula 12 online generic viagra levitra de 5 mg cipro basics 250 mg generic viagra teva erythromycin rat 500 mg zithromax 250 mg annostus generic viagra 120 gr prednisone 10mg pack 32 prednisone generic price canada levitra cheap generic cialis 40 cheap what is singulair paediatric priligy 60mg uk my micronase coupons prograf buy online ireland buy metformin canada sominex online meds asacol daily use reviews nike 95 jd buy 500mg doxycycline vendo generico viagra safe buy viagra mexico propranolol por 40 mg there generic cialis xenical 120 mg wirkung viagra order free hong kong buy haldol online drugs albendazole price viagra preis 50mg sale ranitidine canadian pharmacy rumalaya liniment prescription drug maxalt-mlt acquisto baclofen sicuro online augmentin 90 mg kg lasix 40 mg cheap lexapro generic depression erythromycin 250 mg antybiotyk propecia generic australia zithromax 500mg tripak buy omnicef no prescription fast delivery cialis generic quality metformin ta 500mg cialis online france alli meal delivery cialis sales online canada discount generic wellbutrin 682 zyloprim results forum 10mg nolvadex enough lexapro 20 mg used 75 mg viagra generic nexium buy australia xenical information online discount brand advair diskus mg viagra plus 100 mg. amitriptyline migraine how long free medicine without a prescription pret viagra 50 mg wellbutrin mg amounts where to buy cyphroheptadine without prescription lexapro 10 mg buy zithromax 100 mg price safe nizagara buy bactrim 400 80 mg pyridium medication order genuin generic cialis metronidazole flagyl 500 side effect genuine cardura 100mg canadian pharmacy no rx buy elavil price valtrex 500mg how to order prednisolone clomid online chemist proventil sale prescription lupin lisinopril 5 mg cialis weekendpil 5mg cheapest viagra with prescription uk lexapro 10 mg canada zovirax 800 mg uk 2.5 mg cialis appearnace manfaat cialis 20 mg order silagra india ordering lisinopril online generic biaxin cost buy 10 clomid pills proscar 5mg tablets nhs cialis online dangerous zovirax usa seroquel on line in the canada cheap albendazole buy online coumadin and alcohol questions cipro xl generic lisinopril normon 5 mg lexapro 10 mg citalopram india pharmacies online that sell nizoral discounted xenical online buy zithromax online cialis real online what shampoo is like nizoral generic norvasc us cialis 2 x 5 mg clomid success 50 mg buy xenical pills strattera kopen online alberta canada pharmacy jobs levitra 20mg nebenwirkungen order cialis telephone diflucan 50 mg fluconazole generic for augmentin 500 levitra tablets online reliable clomid online cialis online nabp dipyridamole online forum cheap viagra malaysia viagra 100 mg effets buy zofran no prescription fast delivery using cialis 20mg prednisone 5mg schedule trileptal cheap uk 160 mg strattera online pharmacy mexico review what is septilin syrup generic nexium 20 mg cheapest lithium golf batteries buy online dapoxetine generic benadryl allergy and sinus medicine wellbutrin 150 mg withdrawal para que se usa el dramamine 20 ml cialis online acheter viagra sans ordonnance forum synthroid .01 mg clomiphene side effects strattera 120 mg rec very cheap clomid minocycline and diet pills low aciclovir buyers of ashwagandha canada buy injectable viagra propecia .25 mg paroxetine hcl 20 mg reviews bactrim over the counter usa benzac online uk order cialis 399 cheap zithromax online generic citalopram overnite shipping lisinopril 20 mg pill safe cialis order cialis generic name buy clomid or serophene levitra 10mg anwendung effexor xr dosages available chloromycetin brands india viagra online hyderabad strattera where can i buy it purinethol online legally erythromycin 400 mg tablets nexium 10 mg bijsluiter ordering seroquel online motilium on line no script how to take bactrim ds tablets acheter zyprexa ligne what is avodart drugs generic name viagra kamagra buy india sites buy viagra generic name nexium what is the side effects of flagyl buy generic prednisone online no prescription cialis 5mg gener amoxil bd400mg zithromax 4x 250mg zoloft 50 mg tablet ampicillin drugs bacteria strattera 40 mg medication nexium patent generic wellbutrin 150 mg nebenwirkungen buy lasix retard watch brahmi gadi katha movie online free pro cialis 20 mg cheap prescription buy zyprexa online januvia side effects tegaserod maleate information generic womens viagra cialis 5 mg medline bactrim f 500mg reviews on atarax celebrex 1 mg how to get elavil in australia furosemide generic lasix phenergan dosage children suppository prednisone 5mg zofran pediatric dose gastroenteritis augmentin 156 mg ulotka zovirax online prescription increasing metabolism without exercise xenical 120mg capsules 42 (s3) lisinopril 40 mg walgreens buy amoxil trimox generic can i use fucidin cream for acne can phenergan make you gain weight prednisone 50 mg alcohol non prescription combivent pharmacy canada online pharmacy domperidone cytotec online bestellen generic lisinopril 10 mg viagra 100mg cost cialis.20mg prices suhagra buy without glucophage 500 mg tablets accutane prescription assistance programs cheapest generic wellbutrin glucophage 850 mg effets 25 mg clomid success exelon max dose ordering low dose isoniazid side effects of colchicine for gout bottle you order periactin canadian dosierung levitra 10mg obat zithromax 500mg cheapest 40 mg. levitra buy nolvadex kroger purchasing eulexin online uk is it legal to buy viagra online in usa is duetact available over the counter endep 25 reviews cialis 40mg efahrung buy vpxl with citalopram buy online where florinef buy strattera europe buy decadron in india online to buy synthroid 10mg generic cialis cheap zoloft 100 mg amlodipine besylate 5mg side effects hair loss 100mg zoloft review para que se usa el medicamento abilify uk viagra generic lexapro weight disorder herbal pills help anxiety nexium esomeprazole 20 mg viagra generico contraindicaciones discount viagra 150 mg augmentin 875 mg administrare can get into med school 24 mcat can you only get cefadroxil on prescription buy lisinopril mexico pilex tablets for sale levitra generico 10 mg order diovan overnight medicamento xenical generico propecia when generic paypal buy viagra generico do nexium 40 lloyds viagra online viagra capsules buy generic cialis 5 mg. 100mg cheap clomid buy propecia steroids 50mg vs 100 viagra generic cialis jelly buy propecia 5 mg ajanta generic cialis synthroid 0.050 mg sale discount generic tenormin in usa cialis 20 mg levitra online pharmacy lincocin zovirax ointment no prescription what is glycomet used for order viagra malaysia alesse mail order order diflucan oral diflucan 250 mg allegra hicks rugs lexapro generico anvisa viagra online finnland oiginallevitra xenical 120 mg controindicazioni kamagra cheap price which uk site to buy rumalaya purchase prilosec on line in canada homes for sale in allison park charlotte nc finpecia finasteride 1 mg 10 tablets buy cafergot next day antibiotics for sale uk free trial viagra canada buy tetracycline online mexico no prescription avodart dosage instructions non generic diflucan taking 40 mg lisinopril valtrex 500 mg endikasyonlari cytotec 0.2 mg ulotka buy clomid cvs driverat e zerit doxycycline acne generic
Home MLB News MLB Club Sales Inside the Texas Rangers Bankruptcy Hearing

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 282 guests online

Atom RSS

Inside the Texas Rangers Bankruptcy Hearing PDF Print E-mail
User Rating: / 25
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.


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



Should MLB Force Jeffery Loria to Sell the Marlins?