Texas Rangers looks to hold auction for team to gain support for plan

By Caroline Salls

Pittsburgh, July 6 - Texas Rangers Baseball Partners asked the U.S. Bankruptcy Court for the Northern District of Texas to schedule an auction for the sale of the team for July 16, according to a Monday court filing.

Rangers Baseball Express LLC will serve as the stalking horse bidder with an offer worth more than $500 million. Rangers Baseball Express' principals include team president Nolan Ryan and sports lawyer and minor league club owner Chuck Greenberg.

As previously reported, Texas Rangers filed for bankruptcy to complete the sale to the stalking horse bidder as the best offer for the assets.

However, the company's lenders refused to consent to the sale and filed involuntary bankruptcy petitions against Texas Rangers' equity parents.

On June 22, the court ruled that any actions taken by the equity parents would require the approval of a chief restructuring officer.

Texas Rangers said they feel a CRO would be more likely to vote in favor of the company's plan of reorganization if the sale is completed through an auction process.

As a result, Rangers Baseball Express agreed to waive its exclusivity in exchange for a $15 million break-up fee to be paid if it is not the high bidder at auction.

Under the proposed bidding procedures, competing bids must be at least $20 million more in cash than the stalking horse bid.

Competing bids are due by July 16.

Texas Rangers, an Arlington, Texas, baseball team, filed for bankruptcy on May 24. Its Chapter 11 case number is 10-43400.

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