Sunday, 28 August 2016
Last updated 1 day ago
Sep 7 2011 | 10:56am ET
In his bid to buy the last piece of private equity honcho Tom Hicks' sports empire, Canadian businessman Tom Gagliardi has learned the lessons of his predecessors: Don't mess with the hedge funds.
Gagliardi, who on Friday submitted a bid for the National Hockey League's Dallas Stars, made sure to make peace with Monarch Alternative Capital, the hedge fund that wreaked such havoc on the sale of baseball's Texas Rangers. Gagliardi struck a deal with Monarch, which has since taken control of what's left of the Hicks Sports Group, during the spring, the Dallas Morning News reports.
Monarch will now submit a prepackaged bankruptcy plan by Sept. 14. Gagliardi, who tried to buy the Vancouver Canucks in 2004, must still reach an agreement with a second group of Hicks lenders.
Hicks was forced to sell his sports teams after HSG defaulted on $525 million in debt in 2009.
Gagliardi could still be beaten to the Stars if another bidder is willing to offer at least $10 million more. The amount of Gagliardi's bid is unclear.