Hedge Fund Monarch Unhappy With Rangers Sale

Jan 27 2010 | 3:40am ET

A hedge fund may be all that stands in the way of private equity veteran Tom Hicks’ deal to sell his baseball team in an effort to retire more than $500 million in defaulted debt.

Last week, Hicks’ sports team holding company, Hicks Sports Group, announced its plan to sell the Texas Rangers for an unspecified amount, believed to be more than $500 million. But Monarch Alternative Capital, which holds $100 million of Hicks’ $525 million in defaulted debt, is reportedly unhappy with the deal to sell to a group led by Pittsburgh lawyer Chuck Greenberg and Nolan Ryan, the legendary Hall of Fame pitcher who serves as president of the Rangers.

HSG’s creditors, including Monarch, must approve the sale.

It is believed that the Greenberg-Ryan offer was not the richest received by HSG: Houston businessman Jim Crane’s bid was reportedly higher than the one that was accepted.

Monarch, a New York-based distressed-debt hedge fund, may think that the Greenberg-Ryan group isn’t offering enough, SportsBusiness Journal reports.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...