Finally. It finally appears as if this sale of the Texas Rangers is indeed going to happen. It’s going to go through a voluntary bankruptcy to pay off some creditors, but at least it looks like it’s really going to happen.
The club filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Fort Worth on Monday, a process they hope will transfer ownership from Hicks Sports Group to Rangers Baseball Express, headed by Pittsburgh attorney Chuck Greenberg and club president Nolan Ryan. The new owners want to be in place by the trade deadline on July 31, so that if the club wants to try to acquire reinforcements, they’d have more money in place to do so.
The plan would guarantee the lenders all of the $75 million owed by the club itself. The intention is to remove the club from the dispute and pave the way for the sale to be completed through the courts. Any additional proceeds, which should total a little more than $280 million, would go to HSG to pay the lenders. That’s still well short of the entire $525 million amount that was defaulted on last March. It’s likely that won’t satisfy the creditors, who would then be dealing with HSG to recoup more money. Some of that could be accomplished through the sale of the Stars and any other HSG assets.
The list of creditors filed with the court includes Yankees third baseman Alex Rodriguez, who was traded six years ago and is still owed $24.9 million in deferred compensation. Kevin Millwood ($12.9 million), Michael Young ($3.9 million), Vicente Padilla ($1.695 million) and retired players Mickey Tettleton ($1.4 million) and Mark McLemore ($970,000) are also on the list. So are a gaggle of vendors.
This should put Nolan Ryan and Chuck Greenberg in the owner’s drivers seat by mid summer. Amen.