Phoenix bankruptcy/ownership Part XII: For a Few Dollars More
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08-07-2009, 11:49 AM
Join Date: Jun 2009
Originally Posted by
Any damages COG imposes for breaking the lease would be lumped in with the unsecured creditors, not a separate payment.
As I see it....
*There's the purchase price of the franchise (relocatable or not). These funds will pay off the NHL's debt in possession, all secured creditors, and the balance split amongst the unsecured creditors (including any COG damage claim for relocation bids).
*There's a NHL relocation fee (which I assume will be different depending on the market). This goes to the NHL (29 member teams)
*Indemnification fees for territorial infringement. These fees go directly to the affected team(s).
Right I agree with you, absolutely they'd be unsecured and have to line up with everyone else!
So if COG and Moyes are lumped into the unsecured creditor pool and get cents on the dollar why is everyone so concerned about COG and their damage award so much?
Even if Baum awards them something crazy like 200-300 million there's ZERO chance they recoup anything close to that from ANY bidder, as an unsecured creditor.
And isn't Reinsdorf essentially trying to weasel out of paying damages by making it look like he's staying, even for just 5 years, and he's the saviour, when in fact he'll walk in 5 years with NO penalty/damages to Glendale!
Will Baum not see through Reinsdorf's little end around and apply the COG damages to him as well, IN THE EVENT he does walk in 5 years?
One thing I'm curious about, can Baum put COG at the top of the unsecured creditor list? Ahead of Moyes and the others? Is there legal precedence for this? Or do they all get equal shares of what's left?
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