Wings Legace believes the season is off
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11-24-2004, 10:31 PM
Join Date: Jun 2002
Location: Broncos 8
Originally Posted by
Its very understandable fans would have this misunderstanding. But Brydens debt wasnt for the rink. It was the price of the team, start up costs, and losses while playing in a 10,000 seat arena before the long term real estate deal started with the building of the Corel Centre. And then compound interest.
The rink itself was apparently bought by Brydens partner - Covanta. They were using it as a tax shelter. They also owned half the team. They went bankrupt because of Enrons bankruptcy while they were partnered with them, and because of 9/11 sending their airline services division into a horrible cash position that meant they couldnt make the payments on the arena mortgage and so they went bankrupt.
Melnyk bought the team from Bryden at its value, and bought the arena from Covanta during its bankruptcy for restructruring. The arena came very cheap because without the team it had no value to anyone. The team sold at its Forbes value, once Melnyk had the arena.
The article reported the Bryden owned the rink and the Covanta was the primary lender on the rink.
The list of liens includes one filed by the Ontario Ministry of Finance for roughly $500,000 in unpaid taxes for Terrace Corporation, a Bryden company.
Terrace, which until recently owned over 90 per cent of the Ottawa Senators and 100 per cent of the Corel Centre, is now also bankrupt. It was forced into bankruptcy by Standard Life, which is owed $16 million.
In the late 1990s, Bryden, who already owned 100 per cent of the shares for the Corel Centre, was looking for full control of the team too.
For various reasons—including banks backing out, and major creditor Covanta Energy Corporation going into bankruptcy protection—none came to fruition.
But in the end, only the banks and federal government got any money from the team's bankruptcy sale to billionaire Eugene Melnyk.
The rest, including the original 68 investors, got nothing for the millions they invested in the Sens.
Among them was Covanta Energy Corporation, owed $50.7 million by the team, and $210 million by the Corel Centre.
Bryden's Palladium Corporation, which owns the Corel Centre, owes in excess of $264 million. Under the current sale agreement, Eugene Melnyk will buy the Corel Centre for $27.5 million.
Last edited by me2: 11-24-2004 at
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