Not So Fast: Could Dallas Stars Sale Go Down The Same, Rocky Path?

the lenders only need another $185 to be satisfied? What’s the sales price for the stars, somewhere around 250? Hopefully the new owner for the stars will take care of it.

Although I’m still extremely confused as to the difference between the lenders and creditors, since they’ve been saying the whole time that no matter what, crecditors were only receiving $75 million. Is there any way we can kind of break down how much is owed, how much is being paid off to which groups, and what we hope the sale of the stars can cover?

From a S-T article in May:

The process would allow the sale to move forward without the approval of the 40 creditors who hold $525 million in Hicks Sports Group debt. Those creditors, led by Monarch Alternative Capital, have been blocking the sale. The voluntary Chapter 11 petition was filed in U.S. Bankruptcy Court in Fort Worth.

Under the proposal, sale proceeds would pay the Rangers’ portion of the Hicks Sports Group debt, which is $75 million. The remaining money from the sale of the club would go to Hicks Sports Group, which would then use the funds to pay the remainder of what is owed.

Unless I’m reading this wrong, only $75 million of the $525 million in defaulted loans actually belonged to the Rangers. The rest would be made up by HSG taking proceeds from the sale and paying off debt.

That link also has a list of the top 30 unsecured creditors.

The update helps what i’ve been reading to make more sense…

Not sure if you’ve seen these yet… but read this, this, and this.

It looks to me like $75 of it was Rangers, $150 or so in the Stars, and the rest in Liverpool. (It also says he’s managed to make Liverpool $750 million in debt) Basically he was hoping to sell liverpool for a ton of money to recoup his losses in the rangers and stars, but now he has so much debt invested in one bank over there, that potential buyers are actually sidestepping hicks to buy the debt directly from the bank. I think that means that he loses control of the team in liverpool while still owing them money at the same time. So the only money he’ll receive to pay off creditors will come from the rangers and stars now.

And if he still owes over 200 million, and the stars go for $225, he may not make much money or even come out ahead in the end. It all depends on what happens with the sale of liverpool and how much debt he’s left with after someone else becomes the majority owner.

At least… I think that’s what I learned from reading all this.

I was one of the lurkers throughout, but I’m a letters guy, not a numbers guy. I’m afraid to look at my checking account every week, let alone try to understand this kind of money.

Nice job.

The process has been pretty smooth to get the final bid approved, but there’s a few things worth taking note:

CBS 11 Newsroom: IN COURT: The Judge asks if they want to take on the Stars case here now. Room breaks out into laughter

Foreboding? Hopefully we won’t have to go through with this process for the Stars, but I imagine it will be much smoother than last night was if that winds up being the case.

IN COURT: fox sports had issue, could not hear what it was because Greenberg chatting with MLB reps, but they tell judge it has been resolved

In the process of making sure all 12+ parties involved agreed on the bid, several stated that they had minor issues, but that terms had been agreed to, and it would not affect the sale of the Rangers. Of course the one that Stars fans would be particularly interested would not be heard (figures), but my guess is that FS had an issue with whether or not the television contract would stand under the new owners, and it’s resolved that it will. That’s good motivation for them to not bother with purchasing the Stars at this point.

If I catch anything else, I’ll post it.

http://mobile.lonestarball.com/2010/8/5/1606567/my-breakdown-of-the-numbers