Hicks Creditors Block Debt Repayment Move

May 26 2010 | 10:08am ET

As expected, the Texas Rangers’ creditors, led by hedge fund Monarch Alternative Capital, don’t plan to make the baseball team’s bankruptcy proceedings smooth and easy.

The club filed for Chapter 11 protection on Monday, seeking to force its sale to a group of investors including team president and Hall-of-Fame pitcher Nolan Ryan. A judge in Fort Worth, Texas, gave the team the green light to conduct normal business operations and pay its employees, but complaints from the creditors caused U.S. Bankruptcy Judge D. Michael Lynn to postpone further decisions until today.

The Rangers had hoped to pay $75 million to cover its debt to Hicks Sports Group, its parent company, which defaulted on $525 million in debt last year, as first reported by FINalternatives. The move would have allowed the $575 million sale to a group led by Pittsburgh lawyer Chuck Greenberg to go ahead.

“They chose to file for Chapter 11 protection to avail themselves [of the entire debt]… and show no intentions of conducting a fair, transparent market search,” Dennis Dunne, a lawyer representing its four biggest creditors, including Monarch, told the judge. Monarch and the other creditors have been critical of the Greenberg-Ryan bid, calling it the lowest of the three finalist bids.

“Nothing will happen before July 1,” the judge said. “I want to accommodate the Rangers, but I want to do this right as well.”


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note