Dodgers-Highbridge Loan OKed

Jun 29 2011 | 11:03am ET

The Los Angeles Dodgers will get their loan, which the baseball team needs to make payroll tomorrow, from Highbridge Capital Management.

A federal bankruptcy judge in Delaware approved the loan after the Dodgers and Major League Baseball reach an accord of their own, after the latter had initially opposed the Highbridge loan. MLB offered its own debtor-in-possession financing to the team after the Dodgers claimed the loan from the Highbridge Principal Strategies fund was the only immediate financing available.

Baseball did win several concessions on the Highbridge loan, a one-year DIP paying at least 10% interest. A $4.5 million commitment fee was cut to $250,000 and deadlines mandating the sale of the team's broadcasting rights were eliminated.

The Dodgers filed for bankruptcy on Monday after MLB rejected a proposed 17-year television deal worth $3 billion. Much of those proceeds were to go to settling owner Frank McCourt's divorce with former Dodgers CEO Jamie McCourt, which made the deal contrary to the team's best interests, according to baseball.

The Dodgers plan to try to sell the TV rights again in bankruptcy.

The team will have access to $60 million immediately to help it meet nearly $40 million in financial obligations at the end of the week. The remaining $90 million in the credit facility is deferred, pending another court hearing next month.

Despite consenting to the loan, MLB is likely to file a motion to seize the team from McCourt, the Associated Press reports. Commissioner Bud Selig in April took over day-to-day control of the team.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.