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MLB's Insistence On Ryan-Greenberg Deal May Threaten Texas Rangers' Bankruptcy

Posted By admin || 31-Jul-2010

MLB's Insistence On Ryan-Greenberg Deal May Threaten Texas Rangers' BankruptcyIf you've been following the Texas Rangers Chapter 11 bankruptcy then you probably realize that the MLB has made it clear that they want the Ryan-Greenberg group to purchase the baseball team.  Lenders oppose the deal because they say that it is not the best deal and that other potential buyers are offering enough money to repay all of the team's creditors.  A matter of fact, even one of Hick's attorneys said that before the bankruptcy filing in May, the MLB was insisting that the Texas Rangers only negotiate with the Ryan-Greenberg group despite there being another bid from Houston business man Jim Crane, which was higher and already fully financed.  Bob Selig of the MLB insists that the MLB has the right to choose ownership of its teams and that he will invoke the "best interests of baseball" clause if needed to accelerate the sale to the Ryan-Greenberg group.  However, Selig may be failing to understand that the bankruptcy judge also has broad powers and has a responsibility to make sure that all creditors are treated fairly during the bankruptcy case.  The bankruptcy judge cannot approve any deal that was done unfairly or that unduly harms creditors or favors one set of creditors over another.   Chapter 11 bankruptcy is designed to help an indebted company repay its creditors and emerge successfully from bankruptcy.  Repaying the creditors in bankruptcy is just as important as emerging successfully from bankruptcy.  In order to do both, the bankruptcy judge is charged with balancing the interests of both the company in bankruptcy and their creditors. Re-opening the bidding process for the Texas Rangers baseball team just may be what's needed to restore that balance in this bankruptcy case.

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