Shlachter: New Developments in the Rangers Bankruptcy Saga
by Adam J. Morris on Jul 30, 2010 10:35 AM CDT
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PrintBarry Shlachter has a story up today about ongoing developments in the bankruptcy court this morning.
The Greenberg/Ryan group has removed the controversial "side deals" that the creditors had been objecting to from their bid, and are asking the court to approve this revised bid, which was negotiated with the Chief Restructuring Officer, William Snyder, alleviating the need for an auction.
Mark Cuban and Jim Crane are both apparently peeved:
We do know that Mavericks owner Mark Cuban and Houston's Jim Crane, two of the other possible bidders, aren't happy with the latest development. Nor are lenders with Monarch Capital.
Cuban's attorney, Clifton Jessup, attacked the new deal, saying that if an auction were held as scheduled, Cuban would bid aggressively and possibly even beat the new terms. Crane's attorney said he has found new investors and is very interested in making a bid, either alone or jointly with Cuban.
So much for Cuban being just a "backstop" in case Greenberg/Ryan's group couldn't get a deal done, I guess...
UPDATE -- Maury Brown also has a story up on this.
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If Crane and Cuban are mad
and Hicks is getting screwed, it has to be really good for GnR.
And if Hicks is getting screwed, then my day just got better.
"Drinks are on me if Lewis posts >168IP and an era lower than 3.86." by RangerMad on Jan 20, 2010 12:36 PM PST
The best settlement is often when no one's happy
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
The best settlement is when I'm happy
By 2028, Mark Teixeira will be in the HOF.
"I am one of the biggest Texas Ranger fans out there but I'm also one of the smartest. Deal with it."
-The Outlaw
That's why it's called a "settlement"
by FuturePants on Jul 30, 2010 10:45 AM CDT up reply actions 1 recs
Sauce
Tasty win sauce….mmmm
"There's really no way of knowing... Sometimes when I see their big eyes looking up from my lap I think, that's definitely a homeless guy in a fur coat." Betty White on SNL
by Pocket Ninja on Jul 30, 2010 10:47 AM CDT up reply actions
If not, it should be
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
Maury Brown also has a brief article up about it.
Including this note on Cuban:
In related news, the lenders of Hicks Sports Group, the holding company of the Rangers that has defaulted on $525 million in loans, have offered up financing to Dallas Mavericks owner Mark Cuban in order for him to be competitive at a scheduled Aug. 4 auction for the sale of the club. Cuban has not yet publicly stated whether he will pursue the club at auction, with bids due to be filed with the court by 8pm on Aug. 3, just 4 days from now.
Freude schöner Götterfunken, Tochter aus Elysium, Freude!
Also from Maury's article linked above
Major League Baseball has backed the Greenberg/Ryan group, and the lenders are currently collecting information through discovery, including scheduled testimony from the likes of Commissioner Selig and eventually Chuck Greenberg, that could be used to file lawsuits in order to collect damages, should the sale not turn out their way.
Bud on the stand!
"Embarrassing admission: I have never, ever, ever been able to see a guy's aura. That's right. I...am an aura-blind American." -Junior, FJM
by Desert Ranger on Jul 30, 2010 10:42 AM CDT up reply actions
I like the name of Cuban's org.
Cuban’s “Radical Pitch, LLC” entered a “Notice of Appearance” filing late last night, signalling that he will indeed be involved, should an auction take place.
is a fan of Cliff Freaking Lee!
I think the Cuban as a backstop was posturing
At least, good chance it was posturing. Not surprising he really wanted to make this happen and isn’t going to go quietly now that it might not.
Cuban
knows what will play well here in DFW and he knows that most of us want Nolan. He said that to get on our good side
"Thank God for Feldman." - Ron Washington to Eric Nadel, August 2008
I think he has to be a bit careful here
He probably wants to maintain a good relationship with GnR and the MLB if an ownership position ever opens up. Have his lawyer push a bit but not too much and himself personally never say anything about it
I think he has to be a bit careful here
He probably wants to maintain a good relationship with GnR and the MLB if an ownership position ever opens up. Have his lawyer push a bit but not too much and himself personally never say anything about it
Oh, and, I guess so much for the theory
that GNR simply can’t afford to up their offer…
Freude schöner Götterfunken, Tochter aus Elysium, Freude!
Well they technically upped their offer
but it seems like what the really did was get Hicks to negotiate out the side deals. I assume that means that they gave Hicks more money to do that but the article doesn’t make that clear
I don't know that they so much upped their offer as they did shift money from the overvalued ancillary facilities (parking lots, office building) back to the team purchase cost.
Hicks looks like he finally got caught holding a big bag of nothing.
Yeah, I think I misinterpreted that
and forgot the parking thing.
Freude schöner Götterfunken, Tochter aus Elysium, Freude!
Your cluelessness on this matter is what I would expect
You must be from Arlington.
/Rangers100
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
Wait a second
Can Judge Lynn rule on this today? If he does, does that free up the cash to pursue Fielder or Berkman?
Section 239, Row 1, Seats 1&2
I was thinking this would just become
the stalking bid and the auction would still happen, though the article makes it seem like that might not be the case.
Freude schöner Götterfunken, Tochter aus Elysium, Freude!
Don't think so
Nothing would be final and given the nature of this proceeding, you probably wouldnt’ want to risk anything where nothing was final
Apparently so
At least, Greenberg/Ryan and the CRO appear to be arguing that he can.
by Adam J. Morris on Jul 30, 2010 10:47 AM CDT up reply actions
So says Schalcter
If Judge Michael Lynn approves the new deal, which apparently was negotiated without the knowledge of the other potential bidders, the auction scheduled for next Wednesday would be cancelled.
Look at the comments under Jeff Wilson's blog post on dallasnews.com. What a bunch of rocket scientists.- Keith Law
Did you call the hypothetical hardware store and buy a theoretical chain saw?
Cancelled as in not going to happen anymore
Or cancelled as in due to the changes we have to re-schedule?
There is no real reason why he can't.
The parties could claim prejudice (meaning: they aren’t prepared and didn’t have enough time to prepare), which can be a pretty good argument. But strict legal reasons, I’m not sure why he can’t rule.
by FuturePants on Jul 30, 2010 10:51 AM CDT up reply actions
There's nothing stopping his ability to rule
But he might decide to simply allow the auction to go forward, particularly since we are so close to the date.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 11:31 AM CDT up reply actions
Maury just reposted.
Check the link.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 11:42 AM CDT up reply actions
It's possible but the judge has a calendar/docket
My guess is he at least gives everyone some time to chime in and voice their objections. If he doesn’t his decision is at risk.
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
Judge Lynn normally doesn't docket anything for Fridays.
I’ll check the NDTex website to see if he has anything today.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 11:32 AM CDT up reply actions
In any case
I don’t think either of those are happening.
by brettgardner on Jul 30, 2010 11:14 AM CDT up reply actions
If the CRO is working with GnR
that is a new, positive development that could be good.
Again, knowing nothing of bankruptcy, I don’t know if this will change anything. The judge has already ordered the auction. On the other hand, the judge has seemed to want to confirm GnR all along and is just waiting for a good reason too so maybe this thing will be approved and we can avoid the uncertainty of next week.
"Thank God for Feldman." - Ron Washington to Eric Nadel, August 2008
Well, if the CRO says this a good deal that goes a long way with the judge
I think the CRO has been working to strip out the issues the creditors have complained about all along. I’m sure they’re not happy but they might not have a legitimate bitch anymore (except they wanted a new auction).
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
the CRO wanted to get them a better deal through an auction
now would that be deemed unnecessary?
A baseball game is simply a nervous breakdown divided into nine innings.
I'm sure not according to the creditors
They’ll still claim a better bid might have appeared out of thin air at the auction.
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
As long as Crane and Cuban are grousing....
….it’s a fair statement, because if they don’t auction the team, nobody will truly know if those guys could have had their financing in place.
by FuturePants on Jul 30, 2010 11:05 AM CDT up reply actions
Didnt' the judge say at the very beginning that the money wasn't the issue?
I remember something like that anyway. If that’s true, it seems to me that the possibility of a higher bidder isn’t the issue.
Well that is what the creditors' argument has always been:
This bankruptcy is BS, because the current purchasers of the team (GnR) don’t allow for the maximum recovery of the creditors in this bankruptcy. And as bankruptcy’s purpose is to a) discharge a debt (basically) and b) to provide the most relief for creditors as possible, the entire banktupcy is a sham.
by FuturePants on Jul 30, 2010 11:12 AM CDT up reply actions
EXACTLY, ie: if judge just approves this with no auction at this point
There will be lawsuits galore from Cuban/Lenders/Crane etc. Not sure if there is an appeals process (maybe available to Creditors only) that would surely get another look as point of bankruptcy is to provide highest and best solution.
I thought you could not appeal a BK judge's ruling?
"I support you, Wash; I’ve always supported you," Young said
"Back on the scene, with a gangsta lean" RW
That would give BK judges such a massive ego and power trip that nobody would want to enter those chambers
you appeal BK judges in federal district court
I was in court recently
And the judge’s cell phone went off in the middle of an attorney’s argument with the ringtone “Bad to the Bone”
So lame
I'm almost positive you can
Would be a nasty checks and balance error if not
Sure you can.
But that doesn’t mean Cuban and Crane actually have standing to do so.
If Judge Lynn issued a ruling on the sale today, which I highly doubt he will do, that ruling would be appealable in district court.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 11:34 AM CDT up reply actions
There is an appeal
but they creditors would need to file a stay and everybody seems to think they wouldn’t get that granted so then it would just be after the fact monetary damages.
But the deal would be in place already. Monetary damages aren’t exactly great news but at least the sale will have gone through.
I would assume that they have a limited time period to file an appeal
not really a stay, and that the separate court would rule on if appeal would be heard or not
No
they would need to file a stay to prevent the sale from going through.
the appeal is an appeal but that appeal is useless to a creditor trying to block a sale because the appeal wouldn’t overturn the sale, it would just at best grant the creditors monetary damages
The reason that nobody thinks they can do it is that everything seems so speculative.
There may be a better offer out there. This team could be sold for a higher amount.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 11:35 AM CDT up reply actions
No one is going to put their bid out there
Unless they have to, and now may be the time for Cuban/Crane to avoid confirmation of this latest development
I think there are enough reasons for a court to deny the stay
It’s a tough standard to meet and given the way the bankruptcy has proceeded, I think there is enough out there to just approve the plan as implemented.
But who knows, federal district court judges do a lot of things.
It really shouldn't be an issue
GnR won the initial bid and the right to exclusive negotiations to buy the club. If the judge sees this new deal as a solid offer with no problems, then there’s no reason to look for a higher bidder.
By 2028, Mark Teixeira will be in the HOF.
"I am one of the biggest Texas Ranger fans out there but I'm also one of the smartest. Deal with it."
-The Outlaw
Not correct
It is argued that the initial negotiations were not conducted fairly. IE: Bidders weren’t allowed to field offers correctly. If Hicks negotiated with GnR exclusively and didn’t give others a fair chance before giving exclusive negotiating to GnR, that is an unfair process and warrants lawsuits. Auction process alleviates that by allowing fair process.
And while the new bidders aren't in itself evidence of an unfair process
it is a bit damning if they can prove there are multiple bidders coming out that had more money.
The counterargument is obviously that these guys weren’t getting MLB approval and nobody new has appeared and nobody new was turned away by the MLB approval process in the beginning
Since we're talking about a franchise of MLB here
Its not just about the highest bidder winning, if I understand some of the process correctly. It was about the best potential ownership for the team. Some of what would qualify someone as best is money, but I’d have to think that they are allowed more to it than that.
By 2028, Mark Teixeira will be in the HOF.
"I am one of the biggest Texas Ranger fans out there but I'm also one of the smartest. Deal with it."
-The Outlaw
Here is the issue on that
The judge cannot decide on this factor or let it determine his decision because that is SOLELY up to MLB whether or not to accept an ownership group. The judge only has monetary figures and things like creditor rights and the side deals. If all other things equal Cuban or Crane’s bids are higher monetarily, then judge will have done an injustice by not allowing auction to go, regardless of whether or not they think Crane or Cuban will get MLB Ownership approval.
Well if the creditors get what the money they are owed
then it doesn’t matter if they could get more money.
By 2028, Mark Teixeira will be in the HOF.
"I am one of the biggest Texas Ranger fans out there but I'm also one of the smartest. Deal with it."
-The Outlaw
They are getting what they are owed from this SALE specifically regardless of bidder
They get 75MM plus interest from this bankruptcy proceeding, but they have a vested interested in the price going higher because they are owed a total of 525mm plus interest from HSG, who received the proceeds from this sale. So basically to recover the 525mm plus interest they will get 75mm plus interest from this sale and will have to go after HSG for the remainder (which HSG has more money the higher this sale goes, ie higher bidding)
But is that the new owner's responsibility?
The new owner shouldn’t have to be looking out to pay off HSG’s debt. If the price is deemed fair and substantial enough, then why should the judge rule that the creditors need more money from the potential buyers?
By 2028, Mark Teixeira will be in the HOF.
"I am one of the biggest Texas Ranger fans out there but I'm also one of the smartest. Deal with it."
-The Outlaw
It isn't the new owner's responsibility
It is the judge’s responsibility to come to the best possible solution. If that means there is a higher bid with the same terms reached, thats the best possible solution. Once this is done, the new owner doesn’t deal with this anymore and the lenders have to go after HSG which at that time will only have the Stars
Yup - he said you don't have to maximize value for the Rangers
Good point. Which means if the CRO is happy with the deal then there doesn’t need to be an auction (assuming the US Trustee and judge find the deal complies with BR statutes and rules/regs).
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
But we would still get sued to high heaven by everybody involved?
Or at least they would attempt this?
The Rangers wouldn't
If the judge approves the deal the only option for the creditors is to appeal claiming wrongdoing by Greenberg because the matter would be res judicata meaning you can’t bring a separate action involving the same facts involved in a previously decided matter. Their only other option would be to sue HSG.
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
And they can only seek damages, not specific performance of any actual delay?
Is a stay even an option?
Replace Jim Knox
I think Judge Lynn would have to grant it
I can’t imagine him approving the plan and the granting a stay right afterwards
He's technically backed off that stance
I think he said that if the MLB didn’t approve the auction winner then they would have to explain why it wouldn’t’ be in bad faith
Don't recall that
But bad faith is a pretty tough standard.
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
It's more than the lack of good faith, at least as defined by the Code.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 11:47 AM CDT up reply actions
Exactly
MLB doesn’t have to act in good faith but just not in bad faith.
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
Correct
Because at that point the argument was over things outside of money (ie: creditor’s rights on a few sticking points)
If all other things are equal (meaning only difference in bids is dollars), then YES you do have to maximize value for the Rangers as a BK judge.
I could be totally wrong, but wouldn't that be the argument
Or are they not held to that or at risk of appeal if there exists such a scenario?
the creditors were asking for $30M more
they are getting $40M more… they would have an uphill argument it would seem.
Are they?
Or is it just more cash and less taking on of debt obligations?
Freude schöner Götterfunken, Tochter aus Elysium, Freude!
If they feel as though more money is to be had
in another bid that would emerge in an auction then they are going to push for that. They want as much as they can get because they are still taking a huge hit no matter who wins out in the end.
"Thank God for Feldman." - Ron Washington to Eric Nadel, August 2008
Here's the thing though
Creditors are limited to 75MM plus interest in this particular scenario. They want more money because more money means more money HSG has to go after. This will not affect the numbers to the creditors, that should stay at 75MM plus interest.
Wrongo....
The Texas Rangers have been synonymous with explosive firepower ever since they emptied 130 rounds into Bonnie Parker and Clyde Barrow in 1934. - Alyssa Milano
How so?
That’s my understanding?
This is a hearing for the entity that is listed as a guarantor for 75MM plus interest to secured lenders
There's also unsecured creditors
A-Rod for one.
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
but not paying them isn't even really an option
Won’t they get paid on schedule, no matter who is the owner? If the Rangers didn’t pay out on deferred money, no MLB player would ever take deferred money again.
I don't know if it is part of the BK or not
but GnR has stated that they will fully fund the defferred money account whatever it is called.
Semantics maybe, but the creditors are NOT limited to $75M plus interest..
That is all they are secured for, but that isn’t the same as what they will be paid out of the sale.
The Texas Rangers have been synonymous with explosive firepower ever since they emptied 130 rounds into Bonnie Parker and Clyde Barrow in 1934. - Alyssa Milano
Wrong
Proceeds of sale go to HSG, not the creditors, for THIS transaction, they are limited to 75mm plus interest. Creditors will have to separately go after HSG for proceeds from this sale
Perhaps the reports have been over-simplified..
or it was a big assumption on my part…. But I was pretty sure that cash proceeds were pouring through.
That would seem to me (IANAL) to weaken the posiiton that they have a legally vested interest in maximizing sale price. IOW, their actual stake, if you will, in the sale is more of an observer role than a stakeholder role for anything beyond $75M+int.
Ok, that’s enough terminology abuse for one post…
The Texas Rangers have been synonymous with explosive firepower ever since they emptied 130 rounds into Bonnie Parker and Clyde Barrow in 1934. - Alyssa Milano
It'll be interesting
to see how it all plays out, but I think basically what it boils down to is that the creditors probably have what they want now in rights protection, but may push for auction to up bid price. We’ll see how lenders testify on Monday
I don't think the CRO is really "working with GnR"
It sounds like he gave tacit approval to this particular deal at some point, but GnR (probably Hicks) wasn’t willing to do it.
Now they are.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 11:32 AM CDT up reply actions
I can't wait until we don't have to see Hicks' ugly ass face
A baseball game is simply a nervous breakdown divided into nine innings.
Here's my fear
If Hicks’ perks have been eliminated then he might just pull the thing out of bankruptcy. However, it’s also completely possible Greenberg and Hicks have been negotiating on the side as well to preserve some of the perks.
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
Maybe but I don't think that's in their interest
The amount of debt actually secured by the Rangers was something like $185MM plus interest. The unsecured debt attached to the Rangers is some but not a ton to my knowledge. A lot (maybe the majority) of the $525MM was simply loans with HSG so those creditors would be left out of the process and wouldn’t get a cut from the sale and would instead have to sue HSG on the notes.
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
$75 million with a differing point on potential interest
I believe Lenders wanted interest, HSG saying limited to 75
10-4, couldn't remember if it had or hadn't been
Was all just posturing anyways as bid price would just negate any added interest dollar for dollar, ie, had they stayed at 75MM bid price would have been higher dollar for dollar to what we’re seeing now
You would think anyway
the interest issue was also an impairment issue, like creditors receiving interest would no longer be impaired.
Correct
Posturing in two senses:
1) To the judge to try to take voting rights away from creditors to pass plan as is
2) To alleviate an issue with creditors
Unfortunately I think this is too far gone at this point. I do not think judge will approve as that will make the bankruptcy ruling difficult to stand up to as there seems to be better options available at an auction.
That's right
The secured debt was capped at $75MM but the amended plan changed that to include interest. The $185MM in the original plan must have represented all debt, secured and unsecured, related to the Rangers.
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
185
Where did that number come from? I thought the relevant numbers were 75, 270/300, and 525?
If Brad Pitt is playing Beane who do you want playing you?
JD: Eddie Guardado.
by GhettoBear04 on Jul 30, 2010 1:00 PM CDT up reply actions
185mm is the total amount owed to the creditors (secured,unsecured,etc.etc.)
For this transaction. Anything above that amount (minus any subordinated debt agreements) goes as net proceeds to HSG, which the lenders will try to recover later through separate settlement/legal action.
So that's how much the Rangers owe to the creditors?
Does HSG owe $525M on top of that or does that include the $185?
If Brad Pitt is playing Beane who do you want playing you?
JD: Eddie Guardado.
by GhettoBear04 on Jul 30, 2010 1:05 PM CDT up reply actions
525mm plus interest is total owed to creditors related to this case by HSG
Of that 185mm is 75mm plus interest which will offset the 525mm plus interest.
So basically:
HSG owes 525mm plus interest.
Of the 185mm is 75mm for the creditors that are owed 525mm. The other 110mm is other parties. Don’t quote me on the 185mm number though but YES, the 185mm (or whatever the true number is) includes a large sum of debt outside of the 525mm (ie: A-Rod and other unsecured creditors)
Gotcha
Thanks, that helps.
If Brad Pitt is playing Beane who do you want playing you?
JD: Eddie Guardado.
by GhettoBear04 on Jul 30, 2010 1:16 PM CDT up reply actions
The $185MM came from an early filing or press release
Basically the Rangers said all they specifically owed was $185MM.
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
10-4, looked at disclosure statement
HSG Credit Agreement – 75mm plus interest
Baseball Finance Note (MLB Loan) – 18.45 mm
Overdraft Protection (Hicks Loan) – 5.6mm
Emerald Diamond Note – 15.1mm
Transaction Fees – 9mm
DIP Claims – 11.5mm
Also shows that on old disclosure TRBP was looking to clear 256mm
Maybe
But I guess the incentive for Hicks is that if he doesn’t get GnR then he doesn’t get any of the side deals, including the lucrative land deal. Maybe he just figures that he should just give up some of the other perks to preserve the main benefits of dealing with GnR and not a bid approved by the CRO
the side deals are still worth a bunch of money...
why couldn’t he keep the parking lots and live off that cash?
Is this a sign that GnR would have no chance if it went to auction on the 4th?
by LiamP on Jul 30, 2010 10:44 AM CDT via mobile reply actions
I think he's trying to make his deal unappealable (or at least not successfully appealable)
This might provide GnR some confidence that once the deal’s done he won’t have to worry.
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
Check out the first comment
on Maury’s article, linked above. It states that Mark Cuban’s group officially entered the fray at 7:00PM last night and is named “Radical Pitch”. He is going to bid if an auction happens. The question is will he bid alone or is he joined by Crane or Beck or Gilbert or someone else?
"Thank God for Feldman." - Ron Washington to Eric Nadel, August 2008
The lender's objections to this
definitely shows that it’s completely personal with GnR. If they negotiated a new deal that takes out all the objections to the previous deal and you still are against it, it’s personal. We might have new owners soon but the lawsuits are going to be legion.
"Thank God for Feldman." - Ron Washington to Eric Nadel, August 2008
Maybe, but if they changed their bid by as much as $40M
I’d have to think that Cuban wasn’t planning on opening the bidding that much higher. It certainly makes the stalking horse more formidable if the auction goes forward.
Freude schöner Götterfunken, Tochter aus Elysium, Freude!
The Schlacter article
And how about the great work Barry Schlacter has done in all of this. As much as I respect Maury and he’s been great, Schlacter has been the go-to guy since this thing hit bankruptcy.
"Thank God for Feldman." - Ron Washington to Eric Nadel, August 2008
I see that
but I think that is rearranging money rather than actually having more money.
I guess the point still stands. Anyway, I would think the creditors have an idea of what kind of bid Cuban has put together (and Crane for that matter) and they probably think it is more.
Oops
I think I read this sentence too quickly:
The terms of the new agreement are confidential, but the cash amount of the new bid is apparently at least $40 million higher than the previous Greenberg-Ryan offer, which would bring the cash price close to $350 million.
Freude schöner Götterfunken, Tochter aus Elysium, Freude!
Either way
I think technically that means GnR upped their bid by providing cash instead of a note and Cuban would have to up his bid to match the value (if not 40M total, something equivalent to present value) and I think he could have
You never know
The old bid price could have been discounted incorrectly with Cuban much more confident in a higher bid price
I thought the GnR group
already filed a junction that if someone else is sold the team, they are reimbursed money etc which would mean a higher bid wouldn’t really get them more unless its a shit ton higher bid. Of course, you know more about this than I do
A baseball game is simply a nervous breakdown divided into nine innings.
They did
I can’t remember if that got decided. If not, then creditors would always fight it. But even still, I think maybe new bidders could beat it sufficiently
I'm pretty sure that was part of the auction rules which were approved
If GnR didn’t get the team they would get $10MM or 125% of their expenses, whichever was higher. What I don’t know is if that term applied only to their stalking horse price or the possible resulting bidding should someone offer $15MM more than the original GnR bid. My stuff’s at home or I’d look it up.
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
Sorry Im a bit behind
What were the side deals exactly? Was the land part of that? if so does that mean Greenburg won’t get the land now?
land
also deals on whether creditors could pursue claims in the future, stake in the ownership.
Not sure what got taken out and what didn’t
It could be Hicks minority interest in the team in addition to the land
Seems like both would be insider deals.
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
You don't think the immunization against future claims is also gone?
I thought it had been gone but apparently I was mistaken
Where do you see that its not gone?
That’s what bankruptcy court is for. There may be claims, but it wont be for the new owner’s entity, only the defunct Hicks entity that no longer holds the team.
I don't really know what you're asking
The original reason the plan was blocked was because the judge ruled that the immunization against future claims effectively made the creditors impaired and they needed to get rid of that to unimpair the creditors. I thought that happened, which is the reason why the creditors are not impaired and the reason why they can’t block any future plans.
*Notice, the only guy blocking plans is the CRO, as a representative of the Rangers’ old ownership group, who remain impaired.
But then I thought I had read somewhere that the creditors were still mad that they couldn’t pursue future claims against HSG or other Hicks entities, although I can’t remember when I saw that.
Not exactly sure
Will look at the PDF’s to see if I can make more sense of it
I believe you are correct, and that proviso has already been stripped
"I support you, Wash; I’ve always supported you," Young said
"Back on the scene, with a gangsta lean" RW
So does this mean...
…we’re essentially back to where we were in June(?) before the auction stuff with GnR just having to remove impairments?
If Brad Pitt is playing Beane who do you want playing you?
JD: Eddie Guardado.
by GhettoBear04 on Jul 30, 2010 1:08 PM CDT up reply actions
Speculation says yes and no
Yes in the fact that these may very well be the impairments that were asked to be removed, and may not be.
No because we have two finite dates now, the confirmation Monday and auction Wednesday (right?). If no confirmed, auction should go as planned Wednesday, so different from June is that there is light at the end of the tunnel.
On that note..
I seem to recall that the specific impairments Lynn mentioned regarding Class 1 was interest and retention of lender rights post-BK.
The sticking point at that time seemed to be that amending things in that way COULD impair the ownership entities, and that was what the CRO had to resolve.
Am I way off-base there?
The Texas Rangers have been synonymous with explosive firepower ever since they emptied 130 rounds into Bonnie Parker and Clyde Barrow in 1934. - Alyssa Milano
That sounds right
And I think both of those things have been solved, interest previously and the lender rights post-BK today. It’ll be interesting to see what lenders say on Monday. They may accept or may push for a bid anyways to raise price. I would assume they still push for a bid with Cuban being so aggressive. That still may not be enough for Lynn to extend to an auction.
That's probably another one that's gone
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
I e-mailed Chuck $16.00
it’s cool guys, I got this.
by cmkelly29 on Jul 30, 2010 10:52 AM CDT reply actions 5 recs
I wish more people were as noble and honorable as you
By 2028, Mark Teixeira will be in the HOF.
"I am one of the biggest Texas Ranger fans out there but I'm also one of the smartest. Deal with it."
-The Outlaw
I don't think he rolls with a color printer..
he’ll need to find a friend who can print the individual dollars.
I also sent him an e-card with a dancing fox that says “go get’er champ!.”
OT: Beltre feel good moment
Engel Beltre in Frisco: 6 walks, 5 strikeouts.
Freude schöner Götterfunken, Tochter aus Elysium, Freude!
by t ball on Jul 30, 2010 10:52 AM CDT reply actions 2 recs
I was one of his biggest skeptics going into this year
if he keeps this up, he’s more than squashed my skepticism
A baseball game is simply a nervous breakdown divided into nine innings.
Oh, Terry.
I still am not really behind not calling you “Standup Comedian Tim Ball.”
by FuturePants on Jul 30, 2010 10:56 AM CDT up reply actions
Right
Which is what I will always think of you as.
It was a weirdly worded, double negative sentence, I’ll grant you that.
by FuturePants on Jul 30, 2010 11:01 AM CDT up reply actions
Call me whatever you like
Mr. Trousers that have not yet happened.
Freude schöner Götterfunken, Tochter aus Elysium, Freude!
by t ball on Jul 30, 2010 11:09 AM CDT up reply actions 1 recs
yea, those are the numbers I've been tracking most this season for beltre
and are the reasons why I think we can be truly excited about this kids development. Even as his avg plummented in AA, his control of the zone really hasnt been lost… the kid is putting it together in big ways this year. Cant wait til more of his pop starts showing up.
Feliz says his greatest thrill was striking out Boston Red Sox DH David Ortiz, one of his heroes. Yet, when he called to tell his parents, his mother had a request: Strike out New York Yankees third baseman Alex Rodriguez, too.
"So when I did that," Feliz says, "I told my mom, 'There you go. There's your present. Don't ask me to strike anyone else out, OK?'
that's it...bring back the toe tap.
"Sometimes you just want to sit back and watch somebody throw 100." - Jeff Passan on Neftali Feliz
"Baseball's all that's real" - JB
by Cecilio's Guante on Jul 30, 2010 11:15 AM CDT up reply actions
was jk'ing.
"Sometimes you just want to sit back and watch somebody throw 100." - Jeff Passan on Neftali Feliz
"Baseball's all that's real" - JB
by Cecilio's Guante on Jul 30, 2010 11:35 AM CDT up reply actions
I would love to hit big on one of these lottery tickets
that JD has traded for.
By 2028, Mark Teixeira will be in the HOF.
"I am one of the biggest Texas Ranger fans out there but I'm also one of the smartest. Deal with it."
-The Outlaw
Magic beans sprouting all over..
The Texas Rangers have been synonymous with explosive firepower ever since they emptied 130 rounds into Bonnie Parker and Clyde Barrow in 1934. - Alyssa Milano
So, is the big question whether this removes impediments to the creditors?
Wouldn’t that make everything since, like, June moot?
Look at the comments under Jeff Wilson's blog post on dallasnews.com. What a bunch of rocket scientists.- Keith Law
Did you call the hypothetical hardware store and buy a theoretical chain saw?
Also, hehe
Cuban’s attorney, Clifton Jessup, attacked the new deal, saying that
GREENBERG AND RYAN CAN’T HANDLE THE TRUTH!
Look at the comments under Jeff Wilson's blog post on dallasnews.com. What a bunch of rocket scientists.- Keith Law
Did you call the hypothetical hardware store and buy a theoretical chain saw?
by Keynes on Jul 30, 2010 10:56 AM CDT reply actions 1 recs
I'm glad to see
that I’m not the only one that keeps thinking A Few Good Men when I see Cuban’s attorney’s name
By 2028, Mark Teixeira will be in the HOF.
"I am one of the biggest Texas Ranger fans out there but I'm also one of the smartest. Deal with it."
-The Outlaw
The three things I want from the new owner:
1.) Keep JD and all his minions…
2.) Invest heavily in the amatuer market, or at least just give JD free reign over his budget application.
3.) allow a payroll in line with revenue as it expands with this winning team… like next years payroll should be in line with top half of baseball… maybe 90 million.
everything else is just fufu
Feliz says his greatest thrill was striking out Boston Red Sox DH David Ortiz, one of his heroes. Yet, when he called to tell his parents, his mother had a request: Strike out New York Yankees third baseman Alex Rodriguez, too.
"So when I did that," Feliz says, "I told my mom, 'There you go. There's your present. Don't ask me to strike anyone else out, OK?'
So basically:
“Do everything Tom Hicks did in his last 3ish years without the whole ‘we are bankrupt and fucked’ thing.”
by FuturePants on Jul 30, 2010 11:06 AM CDT up reply actions
Pretty much
Just have the ability to retain your own and the ability to add a FA, if the fit is right.
yup. with more money...
but the way hicks let jd run this team since 07 basically was perfect
Feliz says his greatest thrill was striking out Boston Red Sox DH David Ortiz, one of his heroes. Yet, when he called to tell his parents, his mother had a request: Strike out New York Yankees third baseman Alex Rodriguez, too.
"So when I did that," Feliz says, "I told my mom, 'There you go. There's your present. Don't ask me to strike anyone else out, OK?'
4) Whirled Peas
5) no pooftas
6) the larch
Sir Warwick Harrow: Whom do you represent?
Mal: Represent isn't exactly the...
Sir Warwick Harrow: Don't waste my time.
Mal: Fellow called Badger.
Sir Warwick Harrow: I know him, and I think he's a psychotic lowlife.
Mal: And I think calling him that is an insult to the psychotic lowlife community.
Evan Grant mentioned on LSB radio that his budget has team payroll at around $80 million to start next season
"Hey Sanka, you can pee now... uuummm, too late...."
This used to be links to my websites... But the man got in the way, shut them all down... Damn the man...
Rangers Game Streams ~ Password: LSB123
by FormerLSBUser on Jul 30, 2010 12:22 PM CDT up reply actions
Wait
Already there from arb raises? Or that’s what he thinks they will be at after FA additions?
If Brad Pitt is playing Beane who do you want playing you?
JD: Eddie Guardado.
by GhettoBear04 on Jul 30, 2010 1:11 PM CDT up reply actions
they have a budget based on revenue expectations I would imagine
And then they fit payroll under that budget. If payroll is budgeted at 80 million and someones arbitration will put them over that budget then either we trade them and clear that salary off the books or we have to bump payroll either by taking away from some other department (ie latin america or june draft) or we start the cycle of spending more than we take in which is how we got in this mess in the first place
The creditors
After reading the note in Maury’s story about how the creditors are willing to help finance Cuban’s bid- can they be any more obvious that they’re making this personal against Greenberg & Ryan?
They bitch and moan about side deals, and now they’re trying to cut one with Cuban to buy the club?
Seriously, fuck these people.
by RCCook on Jul 30, 2010 11:04 AM CDT reply actions 1 recs
yea, I understood everything when they just wanted their money from Hicks
now they are truly being absolute douche bags
Feliz says his greatest thrill was striking out Boston Red Sox DH David Ortiz, one of his heroes. Yet, when he called to tell his parents, his mother had a request: Strike out New York Yankees third baseman Alex Rodriguez, too.
"So when I did that," Feliz says, "I told my mom, 'There you go. There's your present. Don't ask me to strike anyone else out, OK?'
The whole time
They were bitching about wanting $30million more from GnR. Now there’s an offer where they’ll get $40 million more and they’re still bitching. No doubt they’ve made it personal.
by nrrh on Jul 30, 2010 11:11 AM CDT via mobile up reply actions
Actually they're getting $43MM more than their demand for $300MM
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
I don't think this is the right take
Cuban just represents more money. Why wouldn’t they negotiate with more money?
exactly - its a win/win for them
They get more out of the sale AND they get interest payments from Cubes.
The Texas Rangers have been synonymous with explosive firepower ever since they emptied 130 rounds into Bonnie Parker and Clyde Barrow in 1934. - Alyssa Milano
I don't think that's the point of bridge financing
I don’t think they’ll end up financing the deal. I think they just represent fianncing that they think Cuban can secure but hasn’t technically secured. I think that’s how bridge financing works
Yep, basically transactionaly financing
Lofty fees they get paid, not really long term interest
If it's bridge, then they get a fee for it I'm sure..
Not QUITE the same as interest, but tom-ay-to/tom-ah-to.
If it’s actual long-term financing, then the interest if of course there.
The Texas Rangers have been synonymous with explosive firepower ever since they emptied 130 rounds into Bonnie Parker and Clyde Barrow in 1934. - Alyssa Milano
But
Doesn’t it strike you as extremely fishy that the lenders are willing to help finance Cuban’s bid?
The creditors bitched about fairness, and about side deals, and everyone having an equal opportunity to bid, and now they’re trying to cut their own side deal with Cuban to make sure he winds up with the team?
They’re nothing but a bunch of hypocritical assholes. Fuck them.
Again, not really the right take
They offered bridge financing to Crane too. The reason they would do this is that they get fees for this but if they think Cuban could provide a competitive bid but can’t get financing in place to meet the deadline, they would offer bridge financing knowing that he could get his own financing later.
They would do it for GnR too if GnR came to them saying that they had better creditors in place but couldn’t finalize the financing. At least, no reason to think they wouldn’t take the extra money.
Only about the money
Agreed 100%
Also, I really don’t think theres some personal ploy against GnR. In reality this whole process has been to protect lender rights and spur new bidding. And whether we like it or not, has probably been fair to the Creditors
Where did you see that?
The quote from Maury Brown only indicates that the bridge financing was being offered to Cuban’s group, or at least that’s how I read it.
If they’re making that offer to all of the potential bidders, that’s a different matter- it’s picking one group and only offering financing to them that I have a major issue with.
They offered it to Crane also
was stated before the last hearing. They didn’t offer it to Gilbert but that could be that they couldnt’ work out a deal with him.
Either way, even if they picked a bidder and wanted him to win, it’s not hypocritical. They are only picking a guy that they think will give them the most money. If that group was GnR, then that would probably be fine too
RCCook
You have an issue offering to only one group? That’s called underwriting. Let me go join the bidding process, so they should finance me too? This is simple financial underwriting and nothing personal if they only were offering to Cuban and not Crane
Yeah, I do
Because the lenders shouldn’t be in the business of underwriting one group in particular, if they’re going to be serious about claims of fair bidding.
If they’re only offering financing to one group, how can they claim they don’t care who wins, as long as they get as much money as possible? It seems to me that extending financing to one group (to the exclusion of the others) is a clear show of favoritism to that group.
That’s what I have a problem with.
Do you know the specifics of their underwriting?
This is silly, RCCook. First of all, in defense of “fair underwriting” – how do you know that Crane/Cuban fit into their criteria, and Gilbert didn’t? You are assuming all three fit their criteria and they arbitrarily chose to not offer bridge financing to Gilbert.
Also, even if they did, there is no reason that a company, an individual, a group, whatever, can’t say, “No, I don’t like the idea of lending you money. I don’t want to give you a loan.” outside of discriminatory methods and protected classes, which I doubt are at play. Hey, RCCook, I heard you’re lending money… I mean I’m not your friend but I want a car too. Why can’t you give me money? BULLSHIT.
Replace Jim Knox
Then you have no concept of how finance works
I didn’t say they didn’t UNDERWRITE another group, just that another group may not fit in to their underwriting guidelines and are not offered financing because of that. This is standard practice from used car loans to bridge financing
While I agree with that technically
What that would imply is that the other groups (the ones who DON’T meet their criteria) aren’t really the kind of viable bidders that they have been trumpeting them as. Crane, for example, was the quasi-champion of the lenders in that he was the “jilted bidder willing to go higher” that started us down this auction path.
I think that’s what strikes RCCook as odd.
Oh, and this notion of one of us showing up and being entitled to the same offer is just muddying the waters.
The Texas Rangers have been synonymous with explosive firepower ever since they emptied 130 rounds into Bonnie Parker and Clyde Barrow in 1934. - Alyssa Milano
No one ever said Crane didn't get offered
It’s been said multiple times they are lending to him. I’m disagreeing with RCCook about how he perceives the underwriting process.
That's not how it's working
You don’t say, I’ll offer Joe financing but not Jim without looking at both their financials. They probably looked at both people, realized Joe has more money and decided to bridge his financing.
Fair enough
But none of that’s mentioned in the article.
It just came off to me as the lenders picking a side, offering assistance to that side only, when G&R have apparently settled the issues that the lenders earlier objected to.
bking- that was what I was getting at- if the lenders have to “help” one of the bidders beat out G&R, isn’t that a pretty clear sign that G&R have a better bid on the table? The lenders want their money; G&R are apparently offering what they want, so why are they working with other groups to boost an inferior bid?
I know the answer- because they think they’ll make even more money- but it strikes me as hypocritical that they bitched about not getting what they wanted, then, when G&R satisfy their conditions, they still want more, and are possibly willing to help another bidder to get it.
But I suppose that’s how finance works- get as big a piece of the pie as you can, no matter how long it takes, everyone else be damned.
It's not the lenders fault
that Hicks took 2 months to satisfy their requests and now the dynamics have changed…
I hate how the backspace and go buttons are so close together on the iPhone.
And what is a servos you fucking phone.
by LiamP on Jul 30, 2010 11:35 AM CDT via mobile up reply actions
This cracks me up, you speaking to your phone
"I support you, Wash; I’ve always supported you," Young said
"Back on the scene, with a gangsta lean" RW
I think this article makes it pretty clear that Cuban will bid in the auction.
by LiamP on Jul 30, 2010 11:34 AM CDT via mobile up reply actions
I don't think he ever would have thrown his name in the hat if he wasn't
Had to come out of his secretive shell because of this new agreement
I know LSB is all on GnR's boat
But I’m one that would be happy to see Cuban OR GnR take over… Crane on the other hand… no
Assuming Daniels & co. stay on, I'd be fine with either.
I think Nolan has his benefits (PR, Maddux, Purke) so I’d probably prefer RBE though.
by LiamP on Jul 30, 2010 11:27 AM CDT via mobile up reply actions
Yep, GnR may have baseball experience
But that’s at the minor league level of ownership, Cuban has owned a BIG MARKET PROFESSIONAL top level team for years and his experience is probably higher valued even if in a different sport
No
Cuban has owned the Mavericks.
Sir Warwick Harrow: Whom do you represent?
Mal: Represent isn't exactly the...
Sir Warwick Harrow: Don't waste my time.
Mal: Fellow called Badger.
Sir Warwick Harrow: I know him, and I think he's a psychotic lowlife.
Mal: And I think calling him that is an insult to the psychotic lowlife community.
No, he's in...
He filed last night as an active member of the process under “Radical Pitch, LLC”. Only way he (or any of the others) pull out is if news today “chills” the auction process.
by Maury Brown on Jul 30, 2010 11:34 AM CDT up reply actions
What's your guess Maury?
Does Lynn “chill” the auction process? With this much potential money on the table, isn’t it likely the auction stays?
is a fan of Cliff Freaking Lee!
Someone get on the SecState's website and check the certificate of filing for Radical Pitch.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 11:41 AM CDT up reply actions
Off of comptroller's site
Formed July 1, 2010
IN GOOD STANDING NOT FOR DISSOLUTION OR WITHDRAWAL through May 16, 2011
RADICAL PITCH LLC
800 BRAZOS ST STE 400
AUSTIN, TX 78701-2548
Address is of a entity creation company, probably used by Cuban’s lawyers
I'm about to sue a foreign (OK) entity whose registered agent in Texas is Capitol Corporate Services
Huh, small world.
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
July 1, eh?
Now we know when Cuban started thinking seriously about it.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 11:47 AM CDT up reply actions
Guaranteed to be done as soon as he became involved
All legal expenses etc. tied to the entity for that specific purpose, he isn’t going to commingle business
I'm so backwards on the timeline of this thing now
I can’t remember when this thing had an auction announced, any idea?
yo
theres a key on your keyboard right above the left shift key called a caps lock. use it.
Sir Warwick Harrow: Whom do you represent?
Mal: Represent isn't exactly the...
Sir Warwick Harrow: Don't waste my time.
Mal: Fellow called Badger.
Sir Warwick Harrow: I know him, and I think he's a psychotic lowlife.
Mal: And I think calling him that is an insult to the psychotic lowlife community.
I think he was copying and pasting from the Comptroller website
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
Making it personal against Nolan is a bad idea
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
court room smack down? Creditor comes across aisle, gets in Nolan's face, calling him a sissy... next thing you know
creditor is on the court room floor in a pool of his own blood.
Feliz says his greatest thrill was striking out Boston Red Sox DH David Ortiz, one of his heroes. Yet, when he called to tell his parents, his mother had a request: Strike out New York Yankees third baseman Alex Rodriguez, too.
"So when I did that," Feliz says, "I told my mom, 'There you go. There's your present. Don't ask me to strike anyone else out, OK?'
by blalock84 on Jul 30, 2010 11:40 AM CDT up reply actions 1 recs
and here
I was thinking, “Robin Ventura”
Sir Warwick Harrow: Whom do you represent?
Mal: Represent isn't exactly the...
Sir Warwick Harrow: Don't waste my time.
Mal: Fellow called Badger.
Sir Warwick Harrow: I know him, and I think he's a psychotic lowlife.
Mal: And I think calling him that is an insult to the psychotic lowlife community.
for those of you who don't know what I mean
(heathens) click here
Sir Warwick Harrow: Whom do you represent?
Mal: Represent isn't exactly the...
Sir Warwick Harrow: Don't waste my time.
Mal: Fellow called Badger.
Sir Warwick Harrow: I know him, and I think he's a psychotic lowlife.
Mal: And I think calling him that is an insult to the psychotic lowlife community.
Never gets old
I love how he buttons his shirt afterwards…just getting ready to go back to the office.
If Brad Pitt is playing Beane who do you want playing you?
JD: Eddie Guardado.
by GhettoBear04 on Jul 30, 2010 1:28 PM CDT up reply actions
Seriously.
I can handle finance or bankruptcy…this thread was near impossible…
If Brad Pitt is playing Beane who do you want playing you?
JD: Eddie Guardado.
by GhettoBear04 on Jul 30, 2010 1:29 PM CDT up reply actions
Heh
If Brad Pitt is playing Beane who do you want playing you?
JD: Eddie Guardado.
by GhettoBear04 on Jul 30, 2010 2:00 PM CDT up reply actions
You mean Bieber?
I’m pretty sure he could plug any underage chick walking the planet.. and they all seem to be Tweeting about him.
Hatings
If Brad Pitt is playing Beane who do you want playing you?
JD: Eddie Guardado.
by GhettoBear04 on Jul 30, 2010 1:29 PM CDT up reply actions
Does anyone have a link to the last PDF showing the side deals?
I need to look into it more, could be that more money was shifted to cash vs. notes, trying to figure out how much it truly impacted the money and its placement to different parties.
jerkface
"Sometimes you just want to sit back and watch somebody throw 100." - Jeff Passan on Neftali Feliz
"Baseball's all that's real" - JB
by Cecilio's Guante on Jul 30, 2010 11:17 AM CDT up reply actions
Just a quote from DMN piece from Dan Pleasac on MLB Network:
Us: OK, Cliff Lee has a 16.29-to-1 strikeout-to-walk ratio. What does that figure do to your baseball mind?
Plesac: “The biggest key to pitching is not being afraid to throw the ball over the plate. The biggest fear pitchers have is the ball getting hit hard and that’s why a lot of guys have trouble throwing it over the plate. Cliff is so confident that he can locate his fastball that he doesn’t feel like he has to make somebody swing and miss. He feels confident that if he throws the ball over the plate, somebody is going to hit it softly or off the end of the bat, but not squarely. There is not a bad thought in his mind when he goes to the mound right now. Not having bad thoughts, that’s 90 percent of the battle for pitchers right there.”
So basically, Lee is the mastermind of postive thinking… ha, but I do think there is alot of truth to that with Lee, his tempo, demeanor and all that just exude pure confidence when he’s pitching.
Feliz says his greatest thrill was striking out Boston Red Sox DH David Ortiz, one of his heroes. Yet, when he called to tell his parents, his mother had a request: Strike out New York Yankees third baseman Alex Rodriguez, too.
"So when I did that," Feliz says, "I told my mom, 'There you go. There's your present. Don't ask me to strike anyone else out, OK?'
If Lee truly is that confident
I bet CJ loves talking to him
By 2028, Mark Teixeira will be in the HOF.
"I am one of the biggest Texas Ranger fans out there but I'm also one of the smartest. Deal with it."
-The Outlaw
Hitters do markedly worse when behind in the count
Lee understands this and so he simply goes out and gets ahead of guys and puts the pressure on them. Hitting a baseball is the hardest thing to do in pro sports. Add in the pressure of being behind in the count and it gets even tougher.
I wish Cliff Lee could buy the team
<3
by NellieCruzin4abruisn on Jul 30, 2010 11:30 AM CDT reply actions
And name Mike Olt as managing partner
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
He might be able to afford it
after his next contract.
Freude schöner Götterfunken, Tochter aus Elysium, Freude!
My initial assessment is that if the creditors, Crane, and Cuban are so pissed off right now, it's because they realize they're about to lose this thing to GnR
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
I think they're pissed at the thought that the Judge may approve the Greenberg/Ryan plan before the auction.
I think a pissed off Cuban might be more likely to try to win at the aution. The kid gloves would be off so to speak. I don’t think that would be the best thing for him PR wise. All it would take is to keep JD and resign Cliff Lee and all would be forgiven though.
yea, im down with cubes if the last two things happen
Feliz says his greatest thrill was striking out Boston Red Sox DH David Ortiz, one of his heroes. Yet, when he called to tell his parents, his mother had a request: Strike out New York Yankees third baseman Alex Rodriguez, too.
"So when I did that," Feliz says, "I told my mom, 'There you go. There's your present. Don't ask me to strike anyone else out, OK?'
Judge Approves Aug. 2 Confirmation Hearing...
11sm CT. Requested by CRO. Updated my story at the link above.
by Maury Brown on Jul 30, 2010 11:40 AM CDT reply actions 1 recs
if confirmed...no auction, right?
Baseball, it is said, is only a game. True. And the Grand Canyon is only a hole in Arizona. Not all holes, or games, are created equal. George Will
by GhostofSteveFoucault on Jul 30, 2010 11:41 AM CDT up reply actions
Uh huh.
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
Doubtful
Most likely will have testimony from Cuban and Crane saying their offers will be higher with same provisions. Will not get confirmed, will go to auction as planned.
Comes back to the original question-- Do you have to sell the team to the highest bidder?
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 11:49 AM CDT up reply actions
I don't believe so
In a case I’m in that’s wrapping up there was a CRO. Debtor’s plan was to sell some particular assets, creditors committee objected, various amended plans were submitted, etc. From what I heard the judge loved the CRO and in the end the assets were sold without auction. Of course in that one the creditors finally withdrew their objections. But the Rangers case is still a chapter 11 reorganization. If the CRO believes the Rangers have been sufficiently reoganized under this deal then that says a lot. Also the CRO isn’t going to recommend a deal he thinks the judge will reject.
I presume under the deal the $185MM in Rangers debt is assumed. Add to that the $343MM in cash. That gives you $528MM which is suspiciously close to the $525MM owed the creditors. And after the insider deals have been removed what would the creditors have to bitch about?
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
Interesting...
…so the prevailing thought is that if the CRO and BK Judge agree that the reorganization satisfies the creditors (whether they say it does or not), then whether or not more money could be had is a moot point, as no impaired party stands to gain more? What about HSG? Do they have any objection to this?
Replace Jim Knox
I don't believe HSG could have any objection unless they're a creditor of the Rangers
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
How are HSG and the Rangers linked
legally? How will HSG receive benefits from this sale?
Replace Jim Knox
As far as I remember from last time I reviewed everything
The Rangers Baseball Club is a subsidiary of HSG, meaning all proceeds roll right up the line.
Direct subsidiary, so not an LLC formation or somesuch
with HSG as an owning member?
Replace Jim Knox
On the Statement of Financial Affairs for the TRBP
“24. Tax Consolidation Group – Name & Tax ID’s
ENTITY FEDERAL TAX ID NUMBER
HSG Sports Group Holdings LLC 75-2819720”
TRBP is a partnership with a GP and LP, both Hicks owned.
agreed up to one things
“$528MM which is suspiciously close to the $525MM "
525mm is from secured creditors for HSG only while 528mm pays off multiple parties for the Texas Rangers (in CH11). Secured creditors that own the 525mm from HSG will be able to recover the 75mm plus interest along with whatever this sale clears for HSG (which should be increased by removal of insider/side deals) after all creditors are paid off (many of which are not the parties at interest to the 525mm)
I don't believe that's correct
I don’t believe the $525MM is secured debt of HSG I just think that’s all of it’s debt. That’s why other lenders have mentioned the only thing this case does is prevent lenders from making these types of loans and when they say “these types” my assumption is unsecured loans.
The major assets of HSG are the Rangers and Stars. $75MM was secured by the Rangers and there’s no way in hell the Stars have $450MM in secured debt. I’m guessing all balance was unsecured through revolving debt or something like that.
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
Read the Observer artcle if you get a chance
There was an interesting tidbit in there which suggested/claimed that the reason so little ($75M) was secured was specifically to get around MLB’s debt rules.
The Texas Rangers have been synonymous with explosive firepower ever since they emptied 130 rounds into Bonnie Parker and Clyde Barrow in 1934. - Alyssa Milano
I believe I did read that
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
525MM is all secured...
The 525MM is ALL SECURED, organized by JP Morgan Securities:
“The First Lien Credit Agreement is
secured by a first lien on substantially all of the assets of HSGH, HSG, and HSG’s subsidiaries, including
a pledge of the equity interests those entities have in their subsidiaries, including TRBP, and the Second
Lien Credit Agreement is secured by a second lien on substantially all of the assets of HSGH, HSG, and
HSG’s subsidiaries, including a pledge of the equity interests those entities have in their subsidiaries,
including TRBP.”
Clarifying for me
That reads as if the lenders DO indeed have what amount to ownership of all the HSG assets should they exercise those. Why then wouldn’t they force HSG itself in BK and seel things themselves? Did the Rangers just simply beat them to the punch?
The Texas Rangers have been synonymous with explosive firepower ever since they emptied 130 rounds into Bonnie Parker and Clyde Barrow in 1934. - Alyssa Milano
I ask this because your take is fairly unique in this long-running saga
“It’s always good to pick a fresh brain.”
— Should be a quote from Shaun of the Dead
The Texas Rangers have been synonymous with explosive firepower ever since they emptied 130 rounds into Bonnie Parker and Clyde Barrow in 1934. - Alyssa Milano
I'm sure that's next
I’m sure the lenders are going to go after HSG next and that may already be in the works. There really is no telling at this point. They are primarily concerned with this sale right now because in order to recover their 525mm or whatever they can, they need as much from the rangers and stars as possible. By helping protect their interest and raising the bid price, that is more money to HSG, ie more money to the lenders on the second battle. The second battle hasn’t been started yet because what are they going to go after right now? A bankrupt Rangers asset pending sale and a stars asset rebuilding? They are waiting to get resolution (ie: cash) to HSG from this sale so they actually have something to go after.
Wow
This is kind of blowing my mind right now.
by FuturePants on Jul 30, 2010 11:43 AM CDT up reply actions
I'm really surprised he did this so close to the auction.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 11:44 AM CDT up reply actions
I mean
the auction can still go through if the plan doesn’t get confirmed. I see no reason why it would need to get delayed
Right
It’s kind of blowing my mind that the Judge is willing to set this hearing at all.
by FuturePants on Jul 30, 2010 12:10 PM CDT up reply actions
I'm actually not
an auction would probably not be in the best interest of anyone. Even if another group wins the auction then they have to get approved by MLB. plus its expensive not only for the parties involved but the court too. A settlement is the best of all possible scenarios.
Sir Warwick Harrow: Whom do you represent?
Mal: Represent isn't exactly the...
Sir Warwick Harrow: Don't waste my time.
Mal: Fellow called Badger.
Sir Warwick Harrow: I know him, and I think he's a psychotic lowlife.
Mal: And I think calling him that is an insult to the psychotic lowlife community.
Because if he confirms there would be no auction
You can’t confirm a prepackaged plan of GnR after the auction. And it’s Friday at Noon. First available time.
Replace Jim Knox
It's tough to get excited about anything in this up and down process
Hell, we even had a green thread in vain iirc
It's like Greenberg/Ryan are the Rangers at the trade deadline
and they’re swooping in to rob the Yankees(other bidders)
Something that is frustrating....
could this have all been avoided if they had just removed the side deals months ago when the creditors started complaining or not added them initially?
Baseball, it is said, is only a game. True. And the Grand Canyon is only a hole in Arizona. Not all holes, or games, are created equal. George Will
by GhostofSteveFoucault on Jul 30, 2010 11:43 AM CDT reply actions
Of course
nobody really seemed to realize that it would need to come to this. Really sounds like a Hicks miscalculation and he is now correctly assessing the situation
Hicks miscalculated?
Well, I guess there is a first time for everything…
If Brad Pitt is playing Beane who do you want playing you?
JD: Eddie Guardado.
by GhettoBear04 on Jul 30, 2010 1:31 PM CDT up reply actions
but Hicks would have lost out on a TON of interest money.
The longer this drags, the more $$$ in Hicks pockets.
He is losing money in his pocket due to loss of the side deals
but I’m not sure if the interest is coming into play.
Replace Jim Knox
Not really
Not sure where he even has any cash he’s gaining interest on considering team is operating on MLB money and HSG defaulted on loan meaning even if there is money in the bank earning interest for HSG, they are also accruing unpaid interest on the defaulted loan, which I doubt he has his assets hedged higher than the penalties from the default
I doubt we'll ever really know for sure.
Nobody will come out afterward and say “yeah we really screwed the pooch for two months.”
I have a feeling the creditors would have found something else to bitch about.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 11:45 AM CDT up reply actions
I imagine this was Hicks
Hicks didn’t think it would go this far and now that the auction is right around the corner he started seeing the light that he would get nothing for the land most likely (since that was taken out of the stalking horse bid correct?). So he started negotiating to not get as much money but still get some and get GnR as the winning bid.
So WTF is going on?
I’m so tired of reading about this, someone very simply tell me what is happening. I need to get back to work.
Here, let me condense the past 8 months down to a single post for you...
Look at the comments under Jeff Wilson's blog post on dallasnews.com. What a bunch of rocket scientists.- Keith Law
Did you call the hypothetical hardware store and buy a theoretical chain saw?
Well now that you call me names I'm not gonna.
Look at the comments under Jeff Wilson's blog post on dallasnews.com. What a bunch of rocket scientists.- Keith Law
Did you call the hypothetical hardware store and buy a theoretical chain saw?
You have chosen.....poorly.....
Baseball, it is said, is only a game. True. And the Grand Canyon is only a hole in Arizona. Not all holes, or games, are created equal. George Will
by GhostofSteveFoucault on Jul 30, 2010 11:54 AM CDT up reply actions
Jesus, you lazy ass
read one of the two articles linked above, it will only take about 5 minutes to read.
Freude schöner Götterfunken, Tochter aus Elysium, Freude!
Dude I don't have flippin time to read your post
Can you paraphrase what you said in two words so I can get back to cleaning my kitchen?
Replace Jim Knox
I have
and it looks the same as the other shit that we have been posting the last 8 months. A lot of specualation and nothing really happening.
I am so very close to joining you here
"I support you, Wash; I’ve always supported you," Young said
"Back on the scene, with a gangsta lean" RW
Listen Bill Gates
I’m sure your time is valuable and everything, I mean, that’s why you’re coming to LSB for legal news.
But it’s not anybody’s job here to make sure you have what you want.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 11:55 AM CDT up reply actions
glad you had time to stick around and argue :-)
the main difference is a confirmation hearing before the auction. If it gets confirmed, no auction and we proceed with Greenberg/Ryan. At least that’s what I understand. I could be completely wrong, but that’s a chance you take when you don’t want to read for yourself.
ooooooooooo
"It’s a fair price with a certain outcome," Snyder told U.S. Bankruptcy Judge D. Michael Lynn. Snyder didn’t give details of the new offer.
Sorry for that time I called you a dicknose, Snyder! You seem like a pretty alright guy right now at this moment in time
Look at the comments under Jeff Wilson's blog post on dallasnews.com. What a bunch of rocket scientists.- Keith Law
Did you call the hypothetical hardware store and buy a theoretical chain saw?
This is how he should have been thinking about this the whole fucking time
He didn’t need to be ferreting out the most lucrative deal.
Whatever. I think he went into this thinking that HSG was making out like a bandit, didn’t want it to happen, and finally got a concession on it. The first time the CRO has acted like he’s not a creditor representative.
Finally.
Agreed.
The fact that everyone hates Tom Hicks strikes again.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 11:53 AM CDT up reply actions
This isn't Snyder's fault.
GnR just met some of Snyder’s issues. Snyder had decent points about the cash flow. Snyder didn’t suddenly wake up today and say, “Shit, let’s do this.”
Replace Jim Knox
It is Snyder's fault
because there’s no way that just getting this shit done wasn’t a bigger issue than the 10M that they might have gotten from a higher bidder. Even if it is 50M, this team didn’t need to be handicapped by a bankruptcy during this season. We did fine but we could have gotten totally screwed during the trade deadline and we struck out in LA (despite JD’s assurances, this was not a good thing).
And the whole thing was probably for not as the MLB was always reluctant to approve anybody else. He went into this thinking this was a normal BK when it wasn’t that at all. IT was a sports franchise BK where the bankrupt entity had a lot more constraints and the best deal out there wasn’t going to necessarily look like the best deal.
But then I guess he ends up winnign because he got some concession – albeit setting up an approval that is 2 days after the trade deadline.
And, since it comes on the heels of the auction, strong suggestion that it won’t get approved anyway.
He’s still a dickface
For the record, we haven't struck out in LA yet.
If this sale were to go through within the next week or so, we could still have a chance at a few of the top prospects, including the top overall- Esteillon Peguero.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 12:01 PM CDT up reply actions
Don't mess up my point
:)
I still dont’ think this extended drawn out process will end up being worth it for anyone involved. The CRO could have just ended this weeks ago
Well we might be out with Peguero anyway.
The whole reason we were considered “the favorite” for him was that his trainer was the same guy that we dealt with for Alfaro and we had signed his son to a contract, as well.
Well now we cut the son, so we might have burned that bridge.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 12:05 PM CDT up reply actions
still got the same bonus right?
We kept him long enough that it didn’t look like a bribe for a player.
Perhaps.
It is pretty interesting that Peguero hasn’t signed with anyone else, there were supposed to be a couple other teams interested.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 12:07 PM CDT up reply actions
Your first issue with all of this is that you are posting as a fan of the Texas Rangers
This has very little to do with the baseball aspects of the Texas Rangers, and this isn’t a special bankruptcy outside of a normal bankruptcy. A bankruptcy is a bankruptcy and Lynn will be the first to remind you of that. It doesn’t matter about the trade deadline and what we want.
Snyder hasn’t moved from his stance, albeit an unpopular one, and when presented with a revised offer from GnR, he deemed it to satisfy his issues with the existing bid. I don’t like his open communication, but he did his job. To be honest, Greenberg and Ryan’s side deals stunk of insider and side negotiating. To be honest, you can blame a great deal of this bankruptcy on Hicks, GnR, and MLB, given their desire to circumvent necessary evils. I’m not defending the creditors completely, but in a way, they had legitimate complaints about the structure of the deal and the original method it was negotiated.
It got to a point where GnR/Hicks/MLB couldn’t hide their hand anymore, and had to align with others involved.
Replace Jim Knox
That's not true, it has everything to do with the baseball aspects
the baseball aspects drive team revenue and the future success of the club which drives future finances. Ignoring the baseball aspect of it is increasingly stupid. Thinking about this as just another industry is what is wrong. We know it’s not that. This industry is inherently different.
And the side deals, when all said and done, probably represent not that much money at all to creditors, especially given the delay and loss in interest payments.
They may result in more money to creditors
Haven’t been able to check, but side deals took out how much HSG (entity that gets sales proceeds) would clear from this auction. By removing side deals, HSG clears more money, ie more money for creditors to come after on 525mm default issue. Side deals would have put money in Hicks pocket, not HSG’s pocket, ie: recoverable vs. irrecoverable
That interest is a sunk cost
They are NEVER going to see that interest and is a moot point. They are effectively going to increase their recoverable assets greatly by allowing HSG to clear more
Not true
I didn’t mean interest payments. I meant interest. Like they were going to get this money almost 2 months ago. Now they have to wait. That’s a lot of interest they are losing out on.
Correct BUT
Let’s say if this went through, the creditors would have received roughly $400MM from the deal to pay off part of the 525mm (this is VERY generous) and they could have gained interest on that money of 10% (VERY generous) over the course of two months.
400MM at 10% over 2 months is 6.66MM or roughly 3.33MM a month. This new deal likely increases the money to the creditors by WAY more than that and is why there is no hurry. Removal of side deals could effectively increase money to creditors by 40MM while an auction maybe even more. That’s a bet I’m willing to take as the creditor
Gotta add legal fees in there don't you?
From published accounts, those likely run into the millions for the lenders so far. Coupled with the breakup fee should this go to someone other than GnR, it still seems like they aren’t making much for this exercise.
The Texas Rangers have been synonymous with explosive firepower ever since they emptied 130 rounds into Bonnie Parker and Clyde Barrow in 1934. - Alyssa Milano
probably will gross 40mm extra or more from sale
EVEN if scenario above was true (which it will be grossly less than that), plus adding legal fees and potential break-up cost, still has potential to net double digit millions more for creditors to come after. Big thing is there probably is only a VERY limited carrying cost for these negotiations because they are probably concurrently actively pursuing HSG so it’s not like they’d have seen that money any faster had this been done months ago. They only would have seen the 75mm plus interest, not the 400mm as the above scenario so that 3.33 mm a month goes WAY down.
The side deals aren't with HSG, right?
If Brad Pitt is playing Beane who do you want playing you?
JD: Eddie Guardado.
by GhettoBear04 on Jul 30, 2010 12:47 PM CDT up reply actions
Yes and no
For instance the land is owned by Hicks and not HSG. But the amended plan attempted to eliminate creditors ability to go after HSG.
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
Gotcha
The elimination of the creditors ability to go after HSG…why would GnR care? Isn’t this the downside of having Hicks still involved?
If Brad Pitt is playing Beane who do you want playing you?
JD: Eddie Guardado.
by GhettoBear04 on Jul 30, 2010 1:04 PM CDT up reply actions
Correct
I’m not sure why there has been much blame on GnR for this… I’m sure they have been attempting to get Hicks to change his tune on this for some time and would explain GnR’s frustration with Hicks.
GnR has some blame, but it's blame they couldn't avoid.
The reason they had the original price and had the exclusive negotiation rights was because they were most willing to play ball with Hicks, and in a way, with MLB. That was blown up in these proceedings.
Replace Jim Knox
I think you have a good meaning behind this but are wrong
BECAUSE: I have a feeling this case has already received special attention and probably been handled more quickly than otherwise. I’m not sure this process is actually as drawn out as you think it is. We’re talking about a 300+MM transaction coming to a resolution in only 6 months, it really is not that long of a time period. We weren’t exactly handicapped either. It’s not the CRO’s fault we’re in bankruptcy and I feel like he has probably moved it as quickly as he could in the interest of all parties.
Bankruptcy is pretty fucking efficient in this country
look at the huge bankruptcies in 2008-2009.
This could have gotten done a month ago with probably very few concessions. I agree that it’s probably not all on CRO and maybe GnR might have needed to concede more but I bet if you look at the financials, they are pretty close to what was originally being offered in terms of money to creditors
I think most people would agree that we have the best insolvency/bankruptcy system in the world.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 12:09 PM CDT up reply actions
Agreed - the nature of our business system reduces risk and produces
business. The greatest country in the world to be an entrepreneur in. It has its trade-offs, certainly, but it is a great place to do business in.
Replace Jim Knox
We're number 1?
If Brad Pitt is playing Beane who do you want playing you?
JD: Eddie Guardado.
by GhettoBear04 on Jul 30, 2010 12:48 PM CDT up reply actions
See my post above
Two things:
1) While dollar figures are not different and secured creditors still getting 75mm plus interest, this most likely drastically increases what HSG clears vs. previous deal and therefore is much more money for them to go after in the REAL case, the 525mm default which is driving all of this.
2) Most bankruptcies don’t involve north of 300MM…. special case
And on your HSG point
I’m saying I doubt that even with the side deals being reallocated, the lenders probably don’t get a whole lot more money compared to attorenys fees and interest lost on the payments
See previous post
I think they effectively do. Probably QUITE a bit more from these last 2 months vs. if it had gone through previously
after some thought
this doesn’t suprise me. GnR and Hicks know that the bids at the auction wouldn’t include the side deals. They know that they would also have to have a bid at the auction that didn’t include side deals. So they chose to change thier deal in order to circumvent the auction. Smart move on thier part.
Monday morning at 10, I think I could make that hearing.
Might go just to watch the proceedings.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
You done with that test thingy?
If Brad Pitt is playing Beane who do you want playing you?
JD: Eddie Guardado.
by GhettoBear04 on Jul 30, 2010 11:55 AM CDT up reply actions
Yep, finished yesterday.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 11:56 AM CDT up reply actions
It's GB
He understands the process.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 12:00 PM CDT up reply actions
Heh
Yeah. I went through the same thing for Step1.
If Brad Pitt is playing Beane who do you want playing you?
JD: Eddie Guardado.
by GhettoBear04 on Jul 30, 2010 12:30 PM CDT up reply actions
My ex-roommate called last night to tell me all about the essay questions
That trusts essay sounded retarded.
I can’t believe they let you off so easy on oil & gas. Force majeure? Please. That’s child’s play.
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
Which one did he tell you about?
The one with the pretermitted adopted child and the child without a presumed father?
I’m still not sure I did that one correctly. Wait, that was the wills question, nevermind.
The Trust question was something else, I’ll have to remember.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 11:59 AM CDT up reply actions
The Trusts question was the irrevocable trust and something about the Trustee becoming incapacitated and his guardian trying to break open the trust
That Wills question sounded terrible. I think as long as you dropped the “pretermitted child” phrase and acted aware of the insurance issue and the difficulties of killing a person and then being awarded an inheritance, you should be good to go.
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
When did you take it?
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
Didn't realize that, congrats on getting done
Is Illinois just a two-day exam? What essay topics do you have? I’m always intrigued by other states’ topics.
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
Let's see. It's around here somewhere
for IL, we got a Contracts/Equity question (they teach equity as a separate subject so you have to know equitable remedies).
An IL Civ Pro question (which is almost identical to fed civ pro rules)
And a property question. All really straight forward and easy. Overstudied.
Also, had an MPT and 6 MEE questions which I can’t remember and they didn’t let us keep it. That’s it. One of the easiest Bar’s in the country apparently
Congrats dude!
How long until you know the results?
"I support you, Wash; I’ve always supported you," Young said
"Back on the scene, with a gangsta lean" RW
Bleah, waiting for results sucks
Unless you know the outcome.
"I support you, Wash; I’ve always supported you," Young said
"Back on the scene, with a gangsta lean" RW
Wow, that sounds really easy (not to diminish your accomplishment)
Texas essays go like this:
2 business organizations: typically one corporate law, one distinguishing between the advantages and disadvantages of partnerships, LPs, LLPs, and LLCs
2 family law
2 Wills/Intestacy/Estate Administration
2 UCC – one secured transactions, one commercial paper
2 real property – generally oil & gas included (or the sole focus) of one essay, sometimes both
1 consumer law – Deceptive Trade Practices Act, typically
1 guardianship or trust essay
They always threaten that income tax or bankruptcy can be sprinkled in, but they rarely are.
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
If it makes you feel any better
I studies most of those subjects and was ready to take an essay on them (except mineral rights and consumer law)
the 6 multistate essays covered some of those things (just can’t remember what)
YES!
It was a trust for the benefit of a nephew where the trust was formed by income from mineral interest owned by the maker of the trust, but the mineral interests themselves were not included.
Then the maker was incapacitated in an accident and the guardian tried to revoke the trust because she lost all of her earning power.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 12:03 PM CDT up reply actions
Wow
On my tests I can lose my license forever for talking about test questions…
"I support you, Wash; I’ve always supported you," Young said
"Back on the scene, with a gangsta lean" RW
We get to take the essay questions with us.
So it’s not like it’s protected material.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 12:07 PM CDT up reply actions
God no.
I am keeping my BarBri stuff just in case something terrible happened.
But I feel pretty good about it.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 12:10 PM CDT up reply actions
I kept those essay books just for posterity's sake
I know what you mean about keeping your stuff. I returned the BarBri stuff because they gave us a $200 refund for it, but I absolutely refused to throw away any of my notes or delete my outlines from my computer. I figured that would be like a pitcher tweeting about his no-hitter from the dugout in the 6th inning, just a bad idea.
I planned to delete my bar outlines at some point, but I realized they make pretty handy reference material for practicing law, so I still have them. Actually looked at one yesterday.
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
I kept all my state specific study materials
Suprising how often I look at that just in the normal course of a case. If I need to find a basic standard for some legal theory that’s where I go. Pretty handy stuff to have around.
"You promised me, Eckstein, that if I followed you, you would walk with me always. But I noticed that during the most trying periods of my life, there have only been one set of prints in the sand. Why, when I have needed you most, have you not been there for me?" David Eckstein replied, "Because my little legs had gotten tired, and you were carrying me." And I looked down and saw that I was still carrying David Eckstein.
Then he grounded out weakly to second.
My wife and I, over the course of the last two weeks, distilled the entire BarBri conviser book into about five hundred flash cards.
I love flash cards.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 12:23 PM CDT up reply actions
I should have shared my flash cards with you
Had a google doc and used an iPhone app. Pretty useful actually
Only on LSB will someone appreciate this: honest to goodness, I made a bunch of Rangers-related mnemonics and memorized that way
I never learn from others’ mnemonics (the ones BarBri recommended were useless to me), but if I make my own they’re killer.
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
I tried to do this...
..but could never find the HamBone.
If Brad Pitt is playing Beane who do you want playing you?
JD: Eddie Guardado.
by GhettoBear04 on Jul 30, 2010 12:35 PM CDT up reply actions
I don't actually use mnemonics.
I just go straight memorization.
And I did almost the entire book of past Texas essays.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 12:37 PM CDT up reply actions
I never used them much before, but I had a fit of clever inspiration
FX2, CJ, and Chris Davis were the only major leaguers I used. The Davis one related to his inability to hit.
The others included Leonel de los Santos, Bianucci, Feliz, Perez, Main, Edwin Escobar, Tullis, and some others.
I even had one about the deadly combo of Mitch Moreland and Tim Smith.
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
I included pictures of the players and printed these off and pasted them all around my room
My then-roommate (typical Astros “fan” who didn’t even know half their starting lineup) was appalled and disturbed that I knew these random players).
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
This is very funny
"I support you, Wash; I’ve always supported you," Young said
"Back on the scene, with a gangsta lean" RW
That's how I aced my MS & Cisco tests
Start with a pool of 500 or so questions, cull down in several rounds to ones you consistently get wrong, and then study the hell outta those.
"I support you, Wash; I’ve always supported you," Young said
"Back on the scene, with a gangsta lean" RW
And they will shortly be posted online for the next set of bar examinees to view and freak out over them
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
You are totally right about the O&G question
It was a fucking joke.
So was the secured transactions question. The only ones that were “tough” were the commercial paper question (because it was totally out of left field) and that wills question. Both of the family law questions were easy (Can a judge order a change of managing conservators where the mother beats the shit out of the child?), and the property question was pretty simple as well.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 12:12 PM CDT up reply actions
I really feel like with a couple of the questions they decided to go against their prior practice of "throw a lot of information out there and let them spot issues."
And instead decided to ask about the most narrow point of law they could think of.
Accord and satisfaction? Really? That’s all they wanted to ask about in commercial paper?
Nothing to do with HDCs, nothing to do with negotiability. Just accord and satisfaction.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 12:17 PM CDT up reply actions
Yeah, it's just weird to do that
How did P&E go? The examiner that writes the P&E is a Lubbock attorney and he showed up at our testing site to wish us luck on behalf of the BLE and then assured us that “I wrote it and it’s very straightforward with nothing tricky.” He lied.
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
He lied again.
There were several tricks.
I’m trying to remember the trickiest question, but it’s been three days.
There was one that was set up as requiring a special exception because of a lack of specificity in an action for gross negligence. You were supposed to answer special exception and all that jazz on the previous question, then they came out with “Assume they made the required changes to ____ cause of action, but didn’t to the gross negligence cause of action, now what do you do?”
That puzzled me for a little bit.
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 12:22 PM CDT up reply actions
Yeah, what the hell was up with them asking about accord and satisfaction?
Ours was a classic “is this a negotiable instrument” analysis.
It seems like Secured is just guaranteed to be difficult, it’s the nature of the topic.
Our family law was retarded. One asked about grandparent’s visitation and the other discussed division of property between spouses and asked “is this fair”? I finished that question in like 15 minutes and then sort of freaked because I felt like it had to be a trap.
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
Business associations was stupidly easy, too.
The question was literally “here is a fact pattern about a bakery, give these people the advantages and disadvantages of forming a GP, an LLP, and an LLC. Explain fully.”
"When I want my men to remember something important, to really make it stick, I give it to them double dirty."- General George S. Patton
by Aquaman, Esq. on Jul 30, 2010 12:20 PM CDT up reply actions
I love that essay
I stopped practicing that one over a week out, it was way too easy.
"LSJ is jealous that the M’s fans have a sucky team that they can whine and snark about. We’re stuck with a good team in first place." -- Adam Von Marriagesmasher
"I’m gonna go on record here and say a great many things excuse throwing a chair at someone." – D.A. Tron
Congrats man
I wish we were in the same town…we could go meet up for brewskies and such.
If Brad Pitt is playing Beane who do you want playing you?
JD: Eddie Guardado.
by GhettoBear04 on Jul 30, 2010 12:31 PM CDT up reply actions
I might be down to go too
Is it ok to wear a beer helmet to Federal Court?
Look at the comments under Jeff Wilson's blog post on dallasnews.com. What a bunch of rocket scientists.- Keith Law
Did you call the hypothetical hardware store and buy a theoretical chain saw?
Totally!
Hey, wait, when we were looking at sending hookers to his house, someone said you can’t go giving gifts to Federal judges… you’re just trying to get me in trouble, there, aren’t you?
Look at the comments under Jeff Wilson's blog post on dallasnews.com. What a bunch of rocket scientists.- Keith Law
Did you call the hypothetical hardware store and buy a theoretical chain saw?
Depends
Are you trying to bribe him with live hookers, or blackmail him with dead hookers in his trunk?
Why can't it be both?
Look at the comments under Jeff Wilson's blog post on dallasnews.com. What a bunch of rocket scientists.- Keith Law
Did you call the hypothetical hardware store and buy a theoretical chain saw?
If/when the plan is approved....
make your way up to Greenburg and give him a warm embrace on behalf of LSB…as security is pulling you away, beg him to find a way to keep Cliff Lee….
Baseball, it is said, is only a game. True. And the Grand Canyon is only a hole in Arizona. Not all holes, or games, are created equal. George Will
by GhostofSteveFoucault on Jul 30, 2010 11:59 AM CDT up reply actions
Get in Greenbergs face and say....
I will do anything if you sign Cliff lee……ANYTHING. Then look down at his dong
by death of the cool on Jul 30, 2010 12:36 PM CDT up reply actions 1 recs
You people are nuts.
"Drinks are on me if Lewis posts >168IP and an era lower than 3.86." by RangerMad on Jan 20, 2010 12:36 PM PST
BTW: Lynn Rejects
dkaplanSBJ
told judge lynn just turned down revised greenberg bid motion: with cuban and crane reps in ct not hard to see why
Replace Jim Knox
Guessing it was too late...
Once the auction was set, we’re going to auction..
The Texas Rangers have been synonymous with explosive firepower ever since they emptied 130 rounds into Bonnie Parker and Clyde Barrow in 1934. - Alyssa Milano
My Tweet... Waiting on an answer
@BizballMaury @dkaplanSBJ One says it was rejected, other says hearing Monday. Which is it?
Replace Jim Knox
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