Friday, 16 September 2011 01:10
The Dallas Stars ice hockey team, the last professional sports club owned by former billionaire Thomas Hicks have filed for bankruptcy.
The Stars are the fifth professional sports team to file bankruptcy in the last two years. The Los Angeles Dodgers baseball team filed in June, the Texas Rangers baseball team filed last year, Phoenix Coyotes hockey team filed in 2009 and the Chicago Cubs baseball team filed in 2009, one year after former owner Tribune Co. went bankrupt.
The team listed assets and debt of $100 million to $500 million in Chapter 11 documents filed in U.S. Bankruptcy Court in Wilmington, Delaware. The Dallas Stars said it has filed a “prepackaged” reorganization plan, the company said in a release. Stars officials are seeking to sell the team at an auction. The lead bidder at that auction will be Dallas Sports & Entertainment LP, according to court papers.
Stars officials said in a statement on its website today that they plan to sell the National Hockey League (NHL) team to Vancouver-based businessman Tom Gaglardi and his family. Gaglardi is chairman and chief executive officer of Sandman Hotels, Inns & Suites.
The company and its units’ 30 largest creditors without collateral backing their claims are owed about $58.5 million, according to court documents. CFV I LLC, is the biggest with a claim of $51.7 million. Other creditors include the New York Rangers Hockey Club, with a claim of $2 million, and Marc Crawford, with a claim of $1.1 million for contract termination obligations, court papers show.