Texas Rangers to Change Bankruptcy Plan
Posted on | June 23, 2010 | No Comments
A June 22 ruling by U.S. Bankruptcy Judge D. Michael Lynn is forcing the Texas Rangers to alter their bankruptcy plan. While the ruling did not indicate one way or another if the Nolan Ryan and Chuck Greenberg group would be permitted to buy the team, it did make clear that the creditors were not entitled to additional money.
The ruling allows the creditors and the Rangers to vote on the plan. Since the creditors have already said that they would vote against the current plan, the Rangers will have to come up with a new plan. Details on how that plan will be different is not available at the moment.
While Judge Lynn did clarify that the Rangers’ creditors were not entitled to additional monies, he did say that he was not happy with some of the creditors rights that would be taken away with the current plan. “The court concludes that … (the Rangers) must grant them their rights under their loan documents prospectively. While payment of the $75,000,000 plus interest will satisfy and discharge debtor’s monetary obligations as required by (a bankruptcy code), in order for the plan to be confirmed without the acceptance of the lenders … the treatment of the lenders must be modified,” Lynn wrote.
The Rangers released a statement that voiced pleasure with the quick and fair ruling of the court. It said that the Rangers are working quickly to submit a revised plan.
If you’re experiencing financial diffculties and would like to learn more about bankruptcy, contact Texas Bankruptcy Lawyer Areya Holder. The website of the Law Office of Areya Holder is located at http://www.holderlawpc.com/ and their phone number is 972-438-8800. Call today to schedule a consultation.
Comments
Leave a Reply