Michael Lynn, the bankruptcy judge in the Texas Rangers Chapter 11 bankruptcy case gave lenders some power to block the baseball teams’ proposed sale and the team’s owner Tom Hicks was prohibited from voting on the deal.
The team and MLB still hope to have their plan to sell the club to a group led by Chuck Greenberg and Nolan Ryan approved next month, but that will now largely be in the hands of William Snyder, the chief restructuring officer (CRO) appointed by the judge to decide whether the sale is fair to the lenders.
Meanwhile, another potential bidder, sources said, has been in touch with the creditors: Jeff Beck, a Dallas businessman who was the money behind Dennis Gilbert’s spurned offer for the team last year. Sources said Beck was making his overture without Gilbert.
The deal that has garnered much attention and rancor is the proposed sale of the Texas Rangers to Chuck Greenberg and Nolan Ryan. Lenders in the bankruptcy case accuse the baseball team and the MLB of accepting an inferior sales deal and have pushed for the reopening of bidding. Since a new bidder has stepped forward, it is conceivable that the bankruptcy judge may allow the bidder’s proposal to be considered. The issue in this bankruptcy case is whether or not the lenders of the Texas Rangers’ are being treated fairly. If the deal is to receive the approval of the bankruptcy court it must appear to be fair to all parties involved. There is no word yet on whether or not the new potential bidder will be considered.