zovirax 50 mg strattera 10 mg wikipedia 80 mg propranolol effects avlocardyl propranolol 40 mg generic viagra 10mg generic viagra cheap order cheap diflucan 100mg clomid worked propecia buy canada buy 1 viagra wellbutrin generic xl sandoz viagra generico doxycycline 300 mg solu caverta generic viagra cheap cialis fast strattera bipolar 2 disorder bactrim forte 800 mg nexium cpr 40 mg lisinopril 5 mg pill generic brand nexium viagra 100mg pfizer 12 celebrex de 400 mg generic cipro 500mg propecia 5mg diflucan price generic prednisone 5mg directions cheap clomid 50mg nexium 40 mg day generic cialis prices zoloft buy taking 5mg cialis buy propecia cheapest beograd cialis 10mg erythromycin cheap cialis 10mg potecy generic viagra proffesional periactin 4 mg used lexapro 15 mg price viagra produce sordera hydrochlorothiazide 25 mg dosage lasix 40 mg forum clomid 50mg conceiving clomid 12.5mg cipro 25 mg levitra 10mg reviews 150mg clomid ovulation medicine lisinopril 10 mg zithromax 500 mg indications cheap lasix paypal dreampharmaceuticals online wellbutrin cialis generic4all lasix 12.5mg cost ordering viagra valtrex 500mg dosage acquisto cialis generic cialis 5mg 14 szt propranolol 40 mg reviews prezzo celebrex 200 mg prednisone apo 50 mg augmentin generic price 150mg viagra online doxycycline hyclate 100mg 500 cialis 80mg jakarta metformin heumann 850 mg lexapro 90 mg cipro hcl 250 mg glucophage forte 850 mg nexium 40 mg tabletten amoxil 50 mg buy american viagra 30 mg lexapro breastfeeding 30 mg propranolol cialis generic fast buy celebrex canada cialis 50mg review generic 80 mg lasix kamagra jelly 25mg remedio generico xenical nexium online canada drug online viagra online meds cialis zithromax 500 mg tab generic lexapro fda cipro 500 mg flakon celebrex 200 mg kapseln cialis generico precio 80 mg of lisinopril generic priligy 30mg farmaco diflucan 150 mg lyme doxycycline 100mg viagra online affidabile nabp viagra online generic pharmacy cialis propecia generico finasteride lisinopril 5mg dosage viagra 100mg poveikis generic wellbutrin image prednisone 30 mg online cialis 20mg original lexapro 5 mg prise xenical 200 mg augmentin mylan generics viagra sildenafil 25mg medicamento lasix 40 mg kamagra 100 mg wirkung augmentin 1000 mg nedir wellbutrin generic options cipro tabletki 500 mg prednisone 20mg rash prednisone 20 mg appetite existe xenical generico half cialis 20mg mailorder viagra doxycycline online cheap valtrex generic cheapest prospect viagra 50 mg nexium generic 30 pills chinese viagra buy wellbutrin generic itching valtrex 1000 mg levitra generic review cialis preis 5 mg buy viagra trusted order propecia finasteride celebrex 100mg erfahrungsberichte lexapro mood disorder generic lexapro purchase clomid shop online order zithromax online prednisone 10mg 5442 cialis 5 mg ipp online viagra lloyds acquistare levitra 5 mg 1cheap cialis online about viagra 800mg buy 150 mg viagra cytotec online philippines trusty online viagra cialis china order lexapro generic teva cipro 500 mg etkileri order cialis 20mg cialis 20 mg boots 180mg strattera clomid 50 mg iui tetracycline 50mg synthroid . 1 mg buy zithromax use levitra buy toronto clomid 100mg buy cialis gel generic buying lasix online lexapro 20 mg pregnant cialis nongeneric 10 mg lisinopril viagra online genuine 7.5mgsdaily of lexapro pastile cialis 20mg 60 mg of strattera xenical 120mg ireland cialis day 5 mg buy viagra 50 cialis 20mg effets clomid uk order clomid 50mg ovulation prednisone 20 mg online cheap viagra you pfizer zithromax online zovirax 800 mg dose viagra cheap reviews lexapro order online lexapro dosage 10 mg wellbutrin 50mg high achat levitra 10mg Online Levitra 90 pills cipro 500 mg pill zovirax 200mg directions cipro 750 mg fiyati augmentin xr 1 mg 62.5 viagra generico sandoz nexium 40 mg prospecto celebrex generic dosage strattera price generic prednisone 20mg. mayo tetracycline hydrochloride 500 mg thuoc celebrex 200mg synthroid generic ok 150 mg viagra dose tablet clomid 50mg increase mg propecia phenergan 25 mg effects celebrex 200 mg indicaciones acyclovir 800 mg zovirax lexapro 20 mg ml viagra buy ebay lexapro generics cialis 20mg proffenials cialis 20 mg doctissimo viagra pills 200 mg lisinopril 40 mg teva generic celebrex same clomid 50 mg price take cialis 20mg cialis 5mg portugal erfahrungen viagra 100mg celebrex 200 mg pills wellbutrin generic 150 mg levitra 20 mg effects propranolol 20 mg presentations sildon generic viagra diflucan tablets cheap cialis canadian 40mg viagra vegeta 200mgl brown cialis generic cheap cialis web glucophage 850 mg fiyati levitra 10mg bayer miglior viagra generico kamagra 100mg cenik 100mg zoloft daily cialis rezept online buy uk kamagra buy cheap periactin diflucan 200mgcandidose online viagra malaysia buy diflucan cheap 20 mg cialis online strattera cheaper prednisone 0.5 mg tab glucophage 500 mg poudre nexium 10mg packet prednisone tablets 25mg about 20mg levitra 50 mg clomid follicles clomid 100mg miscarriage buy nolvadex online 2013 online patika kamagra kegunaan nexium 40 mg cheapest authentic propecia cialis 20mg doctissimo medication metformin 500 mg viagra 50 mg 2 tablet doxycycline vet buy quick kamagra online viagra generico brasil generic wellbutrin xl 450 vanzari viagra 50mg potenzmittel levitra 20mg cytotec generico funciona generico do xenical buy diflucan 150 mg celebrex 200mg capsulas propranolol 40 mg cena cialis money order 5 mg lexapro tired clomid 50mg grossesse nexium generic ppi acheter cialis generic prise cialis 40 mg cialis online vancouver viagra generico resolve cheap levitra paypal buying kamagra bangkok lexapro 1omg erfahrungen online viagra tesco viagra 100mg wellbutrin 75 mg prednisone 10 mg allergies celebrex 200 mg alkohol levitra vardenafil 20mg kamagra 100mg chewable viagra online fedex red viagra 600mg buy zithromax 250 mg tapering prednisone 50 mg strattera 25 mg capsule generics24 kamagra buy uk metformin cialis buy london bactrim 160 800 mg zovirax generic version prednisone 6 day 10mg cialis 5 vs 10 20 mg glucophage tabletas 500 mg safe cialis online buying synthroid online reichen 5 mg levitra buy priligy cheap online kamagra augmentin 457 mg 5 ml augmentin antibiotic 625mg cheap viagra with levitra 10 mg plm viagra 20 mg fiyati cialis 10 mg vs 20 nexium 150 mg india generic zoloft lisinopril actavis 20mg nexium cap40mg clomid 50 mg cipla ert generic viagra order cialis 50 mg generic viagra london bactrim 80 400 mg tablets glaxosmithkline generic wellbutrin doxycycline 100 mg ingredients propranolol 10 mg migraines cialis 10mg lilly increase lexapro 10mg diflucan 150 mg kapsula viagra 100 mg dawkowanie mexico viagra generic augmentin 875 buy lexapro what mg generic viagra cumming erythromycin cream online amoxil dosage 500 mg 50 mg cialis last clomid success 50 mg metformin sr 500mg 20 mg doxycycline online metformin 500 mg smell tratamiento diflucan 150 mg wellbutrin generic issues cialis 20 mg woman propecia 1mg 84 levitra 10 mg pill erfahrung cialis 5mg celebrex buy online strattera uk buy iene viagra online 100. mg kamagra online augmentin 625 mg prescription precio viagra 100 mg 5mg cialis last 30 mg strattera online achat clomid 50mg cialis de 5 mgrs ciprofloxacin cipro generic nexium cheaper ucuz cialis 20 mg generic lexapro better valtrex generic pregnancy lisinopril 40 mg walmart buy clomid ireland levitra 75mg generic wellbutrin price cialis tadalafil 80 mg viagra 25 mg tablets buying cytotec online zithromax 250 mg dosage remedio nexium 40mg 200 mg cytotec zithromax indications 900mg buy 20mg cialis nexium online sampling zoloft 50 mg enough synthroid buy taking150mg viagra nexium 10 mg diluye order xenical uk 200 mg clomid twins generic zovirax india cheap cialis line wellbutrin 37.5 mg zoloft buying buy clomid nz lasix 40 mg uputstvo buy cialis singapore dosis nexium 40 mg wellbutrin 30 mg cialis kaufen online get propranolol online diflucan vendita online viagra when generic lasix 500 mg precio generico al cialis valtrex online cheap cialis 5mg promo strattera 40 mg lexapro generic cvs viagra 100 mg prospecto buy propecia fsa 15 vs 10 mg lexapro adcirca cialis cheaper achat cialis 10mg cialis singapore online propranolol 40 mg precio priligy 30 mg funciona buy cytotec ireland cialis de 5mg. msds doxycycline 25 mg cialis shop online prednisone 40 mg tablets cialis 5 o 10 mg safest viagra online 2 25mg of viagra fake clomid online buy cialis australia clomid order paypal lexapro buy 10mg doxycycline buy australia viagra tesco buy cialis cheap melbourne drug prednisone 20 mg generic valtrex expensive propecia online espana buy lasix mumbai 20mg lexapro dangerous order propecia forum generic brand levitra levitra coupons 20 mg erythromycin ophthalmic generic 40 mg lexapro propranolol 40 mg surdosage kamagra 50 mg jelly 2.5mg generic cialis lisinopril hydrochlorothiazide 10 12.5 mg medicamento cialis generico viagra 50mg 100mg generic buspar cost 50mg levitra viagra uk buy doxycycline accord 200mg diflucan 150 ml buy buying viagra europe medicine levitra 20 mg buying cialis vietnam lexapro 1mg clomid pct 50mg cvs 5 mg cialis bactrim forte 160 mg wellbutrin 150 mg kullananlar clomid online 50mg cialis 20 mg peak obat valtrex 500 mg cytotec online pharmacies female viagra 100 mg clomid tablets 100mg prednisone 10 mg cialis 5 mg confezione generic valtrex brand diflucan 200 mg iv buy viagra rx lasix 10 mg compresse buying 800 mg viagra prednisone 10mg use generic cialis dosage generic viagra dropship kamagra 100mg nederland scherzartikel online viagra buy kamagra 100 mg lisinopril 20mg prices augmentin 875 mg tabletta cipro tablets 500 mg buy doxycycline forum generic viagra walgreens buy viagra zimbabwe generic metformin 500 mg lexapro 10mg sleep generic 5 mg cialis cialis 10 mg filmtabletten buy doxycycline generique doxycycline kela 200 mg levitra 5 mg dosierung propranolol 40 mg anxiety propranolol 10 mg opinie cipro 250 mg harnwegsinfekt celebrex dosage 600 mg medicamento nolvadex 10 mg kamagra 100 mg sobres generika clomid 50mg buy doxycycline china nexium 20mg tablet buy online valtrex acquistare xenical online nolvadex 20mg kur levitra generic us viagra generica online buying safe cialis buy clomid 25mg medicament nexium 40mg augmentin 156 mg syrup viagra online samples priligy 20 mg generic viagra onlineusa metformin buying order propecia generic buying viagra penang sildenafil 100 mg viagra viagra cheap fedex viagra generic information cialis generic 20 1000 mg amoxil online viagra liquid buy uk clomid strattera 25mg cost sordera por viagra augmentin 500 mg posologie prednisone dog mg
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 676 guests online

Atom RSS

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

 
 
Banner

Poll

Should MLB Force Jeffery Loria to Sell the Marlins?