Sacramento Bankruptcy Attorney discusses the Phoenix Coyotes Chapter 11 Bankruptcy Filing
Sacramento Bankruptcy Attorney discusses the Phoenix Coyotes Chapter 11 Bankruptcy Filing
The Phoenix Coyotes recently filed for Chapter 11 Bankruptcy protection much to the chagrin of the NHL. The team has accumulated approximately $73 million in debt over the past 3 years. As part of the Coyotes’ chapter 11 reorganization plan, the Coyotes’ owner Jerry Moyes has proposed selling the team to James Balsillie, the Co-CEO of Research In Motion (RIM) Ltd. Balsillie has offered to pay $212.5 million for the team, which would pay 100% of the teams secured debt and $95.5 million to unsecured creditors. However, as a condition of the sale Balsillie wants to be able to relocate the team to Ontario, Canada.
This case is interesting because, as a member of the National Hockey League, the Coyotes would normally need the permission of the NHL and the other 29 team owners to sell and relocate the team. Moyes has attempted to circumvent this process by going directly to the Bankruptcy Court and proposing that the team be sold to Balsillie. The NHL is investigating the propriety of the Coyotes’ bankruptcy filing and vigorously contesting the sale of the Coyotes to Balsillie. Statements from the NHL have made it clear that the NHL intends to keep the team in Glendale, Arizona. The NHL intends to keep the sale of the Coyotes out the jurisdiction of the bankruptcy court and return the issues of relocation and sale to the League’s purview.
If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs.
