Phoenix bankruptcy/ownership Part XII: For a Few Dollars More
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08-07-2009, 12:01 PM
Business of Hockey
Join Date: Jul 2006
Location: South Mountain
Originally Posted by
Sorry if this has been asked...
Since the objective of the court at this point seems to be what is in the best interests of the creditors, and the NHL had said bankruptcy wasn't necessary,
if the bankruptcy filing never took place and the original Reinsdorf offer was accepted, what would have happened to the creditors then
Would they be entitled to be paid in full?
Would the seller be responsible to pay all debts with the proceeds of the sale?
Would these be inherited by the buyer? Or Negotiated?
What priority would these be paid (NHL, Dell, etc.)?
My thought here is that Moyes/Balsillie paint themselves as making the best deal for the creditors (which at this point in the bankruptcy proceedings is true, minus perhaps Glendale) but where would the creditors stand if the filing never happened?
Everyone other than Moyes would likely have been taken care of due to Reinsdorf assuming the team's contracts and liabilities. Reinsdorf did want at least one of the contracts renegotiated as a condition of the purchase and perhaps others. The only one we know for sure in the pre-bankruptcy offer was the CoG lease, but he probably wanted to also negotiate new terms with SOF and maybe others.
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