Texas Rangers plan confirmed, stalking horse named winning bidder

By Caroline Salls

Pittsburgh, Aug. 5 - Texas Rangers Baseball Partners' plan of reorganization was confirmed Thursday after it was amended to name Rangers Baseball Express LLC as the winning bidder for the team's assets, according to a filing with the U.S. Bankruptcy Court for the Northern District of Texas.

Rangers Baseball Express was named as the stalking horse bidder when Texas Rangers filed for bankruptcy in May.

The winning bidder's principals include Texas Rangers president Nolan Ryan and sports lawyer and minor league club owner Chuck Greenberg.

Radical Pitch said it planned to submit a competing bid earlier this week. The auction was held on Wednesday.

In July, Rangers Baseball Express improved its overall bid for the team assets by $2.7 million to $306.7 million.

The amount of the final winning bid was not included in Thursday's court filings, and Prospect News' calls for more information had not been returned as of late Thursday.

Under the plan, creditors will be paid in full.

Creditor treatment

Specific creditor treatment will include:

• Holders of first-lien and second-lien claims will receive $75 million in cash with post-bankruptcy interest or the amount outstanding under the first-lien and second-lien credit agreements if that amount totals less than $75 million;

• Holders of MLB pre-bankruptcy claims will be paid in full from sale proceeds for the portion of the claim that covers principal and interest due on a baseball financing note. The portion of the claim related to fees, expenses and rejection damages will be subject to bankruptcy court approval;

• Holders of assumed general unsecured claims will be paid by the purchaser when their claim comes due in the ordinary course of business;

• Holders of non-assumed general unsecured claims will be paid in full in cash or receive other treatment that leaves the claim unaltered;

• Holders of the Emerald Diamond claim and overdraft protection agreement claims will be paid in full in cash; and

• The rights of holders of intercompany claims and interest holders will remain unaltered.

The court said its plan confirmation order would take effect by 1 p.m. ET on Aug. 10 unless a stay is granted before then. The court also said it would file a supplemental order by the Aug. 10 deadline.

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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