Bankruptcy Judge Michael Lynn has agreed to rule on the now twice amended Texas Rangers bankruptcy plan on July 9th. The confirmation hearing had been postponed until July 22nd but the bankruptcy judge eventually gave in to the debtors' protests against the delay; but warned that the earlier date would increase the chances of the bankruptcy plan being rejected.
The bankruptcy plan includes the sale, full payment of $204 million to unsecured creditors and a guaranteed $75 million to first-lien holders -- with these creditors and second-lien holders receiving whatever is left over. This is estimated to be $30 million to as much as $100 million short of what the major lenders want to recoup, according sources close to the case. Some have pointed to a $5 million "repayment" to Hicks and another $75 million Hicks would receive from a sale of property near the ballpark to the Greenberg group.
The latest plan also allows dissatisfied lenders to continue to pursue claims against the two HSG entities, even after the Chapter 11 bankruptcy proceedings end. That may not satisfy the lenders.
Lenders have already been notified by two previously unsuccessful bidders that they are still interested in purchasing the Texas Rangers in bankruptcy. Dallas businessman, Jeff Beck, who's Beck Ventures was a developer of Trophy Club, has informed the lenders that he is interested in purchasing the Texas Rangers during their bankruptcy and Houston businessman Jim Crane has also informed the lenders of his intentions to buy the baseball team in bankruptcy. But it is not clear if bidding will be reopened even if the bankruptcy plan is rejected.