FanPost

"Predator" hedge fund could throw wrench in Rangers sale (via Maury Brown)

http://ow.ly/10s6J

 

Written by Maury Brown   
Tuesday, 26 January 2010 01:16

For the majority of Texas Rangers fans, the statement from Hicks Sports Group saying that a sales agreement between HSG and a group of investors headed by Chuck Greenberg and Nolan Ryan was a sign that the end had finally come, new owners were on the way.

But, in a case where Hicks Sports Group debt is still hanging over the heads of the Rangers, there’s a chance that the deal may not meet the muster of HSG’s biggest lender.

One of the final steps in the process includes approval from the 40 creditors that HSG is in debt to before approval from MLB. As reported by Daniel Kaplan of the SportsBusiness Journal, Monarch Alternative Capital, a hedge fund that now owns $100 million of the $525 million of debt that Tom Hicks has incurred may be a deciding factor in the sale. Monarch Alternative Capital is known as a “distressed debt buyer” or in more unflattering terms, a “predator” that looks to “buy debt at a discount from banks that hold defaulted loans and then hopes to make more by selling the assets.”

Because Monarch is in the business of extracting as much of a profit as possible in these types of deals, they could have a considerable say in the matter. As reported by the SBJ:

Monarch saying no to a deal that guarantees it a sure amount of cash could be considered an unlikely scenario, but sources are painting a picture of Monarch as being willing to go to the mat if it thinks it is not getting every penny it should.

It has been reported from multiple sources that the bid from Houston businessman, Jim Crane, was higher than the Greenberg-Ryan bid. It is unknown if Crane would be allowed back into the bidding process, should Monarch Alternative Capital not approve of the deal that the Greenberg-Ryan group has on the table.

X
Log In Sign Up

forgot?
Log In Sign Up

Forgot password?

We'll email you a reset link.

If you signed up using a 3rd party account like Facebook or Twitter, please login with it instead.

Forgot password?

Try another email?

Almost done,

Join Lone Star Ball

You must be a member of Lone Star Ball to participate.

We have our own Community Guidelines at Lone Star Ball. You should read them.

Join Lone Star Ball

You must be a member of Lone Star Ball to participate.

We have our own Community Guidelines at Lone Star Ball. You should read them.

Spinner.vc97ec6e

Authenticating

Great!

Choose an available username to complete sign up.

In order to provide our users with a better overall experience, we ask for more information from Facebook when using it to login so that we can learn more about our audience and provide you with the best possible experience. We do not store specific user data and the sharing of it is not required to login with Facebook.

tracking_pixel_9351_tracker