Balsillie/Phoenix part II
 

Continued from

http://hfboards.com/showthread.php?t=639681

Does anyone have an idea what's going on? Was the filing approved? Or did the judge say its going to take a while to sort all this stuff out?

The 19th seems to be the big day.

besides yotesdiva and the moderator on this board, where is everyone getting their information from?

It's now 2:40 in Phoenix. Maybe the court session is going long...

It sounds as if this won't be resolved in 2009.

This will be trouble for the NHL. They need it resolved soon, so they can make the schedule, etc.

IMO if it's not resolved the team should still be able to operate. The problem is that without funds it seems that they won't be able to. So somebody needs to finance the team if they are to play next season in Phoenix. But any money thrown into the pot at this point is probably gone.

If they can't resolve it any sooner than that they'll make the new schedule with the Coyotes playing in Glendale, I assume with the team completely operated by the league.

Absolute cap floor payroll here we come.

The Sale Motion will not be covered today.

Edit: Glendale indicates they intend to file future motion on 'specific performanvce', cited Penguins

Nominally that means "status quo".

The court may allow the NHL or Moyes, or a court appointed "3rd" party, to oversee the day-to-day running (and financing) of the club for the upcoming season during the "transitionary period" until ownership is determined; and the court may not rule on relocation so that *if* the team plays, it stays in Phoenix/Glendale for the upcoming season.

Well, this is torture. Thanks a lot, courts. :shakehead

Just whether the court has accepted the bankruptcy filing?

All interim decussions will be made on May 27th

So who wants to step up to the plate and lose a few million dollars? Any volunteers?

As far as I can tell it has been accepted because if not then this would be over by now. I read somewhere the NHL wanted to challenge Moyes ownership of the team but were unable to because they failed to file something (i'm not a lawyer)

The NHL BoG

yotesdiva is useless

Its over. Scrums going to begin. Stay tuned

http://www.thestar.com/Sports/article/630631

Pretty close, not much substance or even shallow information in her reporting.

Mouser is doing alright though. Just not often enough. You'd think things were wordy and slow in that courtroom.

Hearing is over, will type up more complete notes later

Not correct. DIP financing is always first in line for repayment.

This is going to be pretty embarrassing for the league if it drags out with a lame-duck team bleeding money for all of next season, pending a move elsewhere. Wonder if they can book Hiram Bithorn Stadium for a few games?

Regarding the lease - the lessor is not a secured creditor.

While accounting rules require that long term leases be treated as debt on the balance sheet, bankruptcy law treats them as executory contracts - that is contracts with continuing unfulfilled obligations.

From what I understand (as a landlord) - the lessor generally gets screwed in bankruptcy proceedings. Subject to court approval, the lessee (tenant, debtor or trustee) in default on an unexpired lease MAY assume the lease obligations of the previous debtor. However the code also allows debtor (trustee) to elect not to continue to perform under a burdensome real property lease. The other party to the lease (the landlord) however can be forced to continue to perform if the property is valuable to the bankruptcy proceeding.

This makes some sense - often canceling the lease would make it impossible for the company to continue operations and would put recovery of any of the creditors capital impossible. But it really sucks for the lessor in a bankruptcy.

It's now 3PM in Phoenix. There should be something up by now...