Bankruptcy Ruling on Texas Rangers Chapter 11 Sale Plan
Over the lunch hour yesterday, Judge Lynn issued his eagerly-anticipated ruling in the Texas Rangers bankruptcy case. The team filed a Chapter 11 Plan that proposed a sale to the group led by Nolan Ryan and Chuck Greenberg. The team’s creditors asked the judge to reject the plan and re-open the bidding.
I was asked by an Editor at the Dallas Observer for some quick observations about the ruling that he could use in an article. Of course I was happy to oblige, and I got my analysis written before anyone else in the country did. After I was done sending it over for the Observer, I took some time to read what other journalists were saying about the ruling.
Daniel Kaplan of SportsBusiness Journal tweeted that the creditors were very happy with the ruling because the judge ruled that the Chapter 11 Plan could not be confirmed as written. Other journalists (including the AP) picked up on that theme and ran with it. Some called the ruling a “crushing blow” to the chances of a Greenberg/Ryan sale and that theme was repeated over and over as each news source parroted what the last one said.
This “crushing blow” stuff is nonsense. If there is one thing I’ve learned in my almost twenty years as a lawyer, it’s that there is always two sides to every story. ALWAYS.
It looks like Hicks (and, ergo, the team) mostly wins. Judge Lynn says that Hicks has to make some changes to the Plan soon. OK, so it can’t be confirmed in its current form. So the creditors can call that part a victory.
The lenders, however, lost their argument that THEY got to decide who purchases the team (they argued that once Hicks went into default, control automatically shifted to them). The lenders also lost their argument that Hicks MUST sell to the highest bidder.
That second point is the key to the entire case. Nobody has mentioned it yet, but this whole bankruptcy case is about leverage, not control. The lenders do not really care if Crane buys the team and do not really believe he can or will.
Instead, the whole reason they are fighting Hicks is to convince Greenberg/Ryan to raise their offer or to get Hicks to kick in the shortfall. The “fair” thing to do is for Hicks to pay it in but naturally he’d rather fight the creditors long enough that Greenberg/Ryan get tired of it and just offer to pay it themselves.
Another interesting thing in the ruling is that at the specific request of MLB, Judge Lynn avoided the issue of whether MLB’s constitution trumps bankruptcy law. It could have been an issue if the bankruptcy court ruled that the lenders were in control but then MLB replied with “we don’t have to accept anyone into our private club that we don’t want as a member.” Watching MLB argue that tension would have been the most interesting part of the whole case!
The AP and other journalists who parroted the story are right in that Judge Lynn is requiring creditors to vote and approve the current Plan, but that’s only unless/until Hicks makes the changes to the Plan that Judge Lynn says need to be made. If the creditors are happy, it’s because Judge Lynn didn’t just completely pour them out. He is not going to confirm the Plan as it now stands, but all Hicks has to do is make some amendments to the Plan to pay the creditors interest on their 75MM and whatever else the court picks at. Once those are made, Judge Lynn will likely approve it and the creditors (Monarch, et al.) won’t have gained anything.
Once the new Plan goes on file, the two Rangers Equity Holdings companies will have to re-vote to approve it. In order to scuttle the deal now, the creditors have to figure out a way to take control of the Rangers Equity Holdings companies so they can cast the vote the way they want. The involuntary bankruptcy cases that the creditors filed against the Rangers Equity Holdings companies several weeks ago may eventually get the creditors some control, but not soon enough I’ll bet.
If I fought Mike Tyson and somehow won the first round on points, I too would be elated. But that wouldn’t mean that I had any better chance of actually winning the fight.
Later, I think the journalists who reported yesterday’s ruling as a “crushing blow” will realize the creditors (Monarch) just won the first battle and lost the war.
UPDATE June 23 at 12:51 pm: In the first hour or two after the ruling came out, I was the only one on record saying the ruling was not too shabby for the team– all the media outlets were saying it was a disaster. Several are now seeing the bigger picture I espoused yesterday, including NBC Sports and Business of Sports Network. The astute commenters (specifically “ab03″) at Lone Star Ball had it figured out by early evening.
Local super-blog Baseball Time in Arlington has a great recap of the media’s rush to judgment.
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Reduce consumer debt credit counseling services in Texas
is big in Texas say that all Texans to help manage DebtThey. That’s because Texas is the largest state in the continental U.S., and will be geographical size. Unfortunately, debt is also quite big in Texas. More people live in Texas and 170288818000, the average credit card debt of households is more than $ 7,000. [...]
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Texas bankruptcy law for the people of the difficult budgetary situation
In addition, there are many ways you can use to write off debts of more. These methods, which may include recourse to the bankruptcy court, you must know your best in any bankruptcy court. Bankruptcy law in Texas in 2005, must go through credit counseling before filing for bankruptcy.
Bankruptcy law in Texas for the debtor and the creditor has taken a new bankruptcy law. This law, at least six months must appear in court, you can receive a certificate Kuredikaunseringu would like to apply for your bankruptcy hearing sessions of the agency approved.
Once the case of bankruptcy of the consultancy is authorized to begin the process of contacting the lawyers of the bankruptcy. This person must provide the means to challenge yourself. This test is part of the new bankruptcy law in Texas.
What financial test is not the case 07 or 13 of the bankruptcy code mean that you can determine whether to apply section. If you have a check and less than $ 6000, after the monthly maintenance costs, depending on the rent, food, medical expenses and loans, then the next five years are eligible for a Chapter 7 are deducted from income.
Otherwise, you must use the Chapter 13 bankruptcy bankruptcy in Texas. Chapter 13 cases, requires a repayment plan using all the details of repayment. Clear. This is so that the court must specify that you can see above.
The judge, so you can see, if you repay the debt for your sincere desire. The judge, all your debts, or if you have the most is when you can be sure that you can not repay in Chapter 13 bankruptcy.
Both documents of Chapter 7 and 13, different, you must gather the necessary documents. After the bankruptcy proceedings have begun. This document is required by bankruptcy law in Texas.
Your declaration of bankruptcy, the current revenue financial transactions is in the last two years, the document contains a list must include the items were and monthly living expenses.
You'll need other items to satisfy the act of bankruptcy law in Texas. With the exception of any property and bankruptcy laws in Texas along the unsecured debt must be secured by shares gave no activity.
Filed for bankruptcy can be delivered to you in your bankruptcy lawyer Once this information. Texas Court of Justice will issue an automatic stay against your creditors. This is to pay these people in a time period defined by the Court.
Texas bankruptcy law is designed to help people in difficult financial conditions. This assistance has a fresh start and will be able to resolve the debt.
Bankruptcy Texas Exemptions
Texas is the second most populated state in the United States. It has a population of almost 25 million people. Texas by itself constitutes almost 8 percent of the population of the United States. Texas is in the 5th circuit of U. S Bankruptcy courts. Filing for bankruptcy in Texas has had a surprisingly small increase of only 3 percent in 2008 from 2007. While the national average increase for filing bankruptcy in 2008 from 2007 was 31. 4 percent. The total cases of filing for bankruptcy in Texas in 2008 were 44,258 as compared to 42,931 cases in 2007.
If you are seeking to file for bankruptcy in Texas, you should know that the bankruptcy law in Texas is the same as in other states because bankruptcy law falls under a federal jurisdiction. The difference however when you do file for bankruptcy in Texas as opposed to the other states are the Bankruptcy Texas exemptions.
Only a bankruptcy attorney that practices in Texas can fully answer all your bankruptcy questions regarding the full scope of the allowable exemptions. Bankruptcy attorneys in Texas will show you how to file bankruptcy to fully take advantage of these exemptions. A Texas bankruptcy lawyer can also guide you through whether it would benefit you more to file a bankruptcy chapter 7 or a bankruptcy chapter 13.
As per the bankruptcy law in Texas, you are allowed an unlimited homestead exemption if your property is under 10 acres in the city or 100 acres outside the city. For a family outside the city it can be up to 200 acres. If the property was acquired within the last 1215 days of the filing for bankruptcy the homestead exemption is limited to $136,875.
Bankruptcy Texas exemptions for personal property are very specific and cater to protecting farmers amongst other professions. A Texas bankruptcy lawyer can explain this to you thoroughly but bankruptcy exemptions in Texas make provisions for horses, cattle, fowl and other livestock.
An interesting exemption in filing bankruptcy in Texas is you are allowed to keep 2 firearms. Your automobile falls under personal property where you are allowed a bankruptcy total exemption of up to $30,000 or $60,000 for the head of family. Personal property is to include tools of the trade and any wages owed. Jewelry is allowed in personal property but can only be up to 25% of the aggregate value of the personal property.
A bankruptcy attorney in Texas will guide you through how to file bankruptcy and take advantage of the allowable exemptions that pertain to your particular case. If you are considering filing bankruptcy in Texas, whether it is in your best interest to file a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy, the bankruptcy attorneys can answer all your bankruptcy questions and help you through this trying situation.
Texas Bankruptcy Exemptions
Texas, two in the United States is the second most populous country. It has a population of about 25 million people. Of the population of the United States, which accounts for 8% of Texas itself. Texas U. S S. Bankruptcy Court is usually the 5th Circuit. Filed for bankruptcy in Texas 2007-2008 was only 3 percent are strikingly increased. The increase in 2007 and 2008 national average is 31 years of bankruptcy. 4%. As 42,931 cases, compared to the year 2007, for a total of 2008 cases of bankruptcy in Texas is 44,258 years.
They're looking for if filed for bankruptcy in Texas, you are a Texas bankruptcy law, as in other countries in bankruptcy law, you must know is the same as the jurisdiction of the federal government. The difference is when it filed for bankruptcy in Texas are opposed to other countries that are exempt from Texas files for bankruptcy.
The lawyer just failed, all your questions completely the practice in Texas, the full extent of the exemption may be granted to respond. You seem to file for bankruptcy to take advantage of these exemptions to complete the bankruptcy lawyer in Texas. Even the lawyer for bankruptcy in Texas, either through the failure of Chapter 13 or Chapter 7 bankruptcy can be a guide to more profit and file Chapter.
As for the bankruptcy law in Texas and, if not the Homestead exemption is allowed on the outskirts of your city or 100 acres of land under 10 acres. For families outside the city, 200 hectares can be opened. Homestead Exemption filed for bankruptcy last 136,875 for this property is limited to U.S. dollars was acquired in 1215 days.
Texas bankruptcy exemptions are very specific personal property, decide to protect farmers in other professions. It is a fund, a bankruptcy lawyer in Texas, the Texas bankruptcy exemption of horses, cows, can you explain this to the provision of livestock and poultry.
The exemption of interest in a failure of Texas is to maintain a firearm 2. Where are your personal property up to $ 30,000, and 60,000 vehicles allowed total exemption applies for bankruptcy in U.S. dollars for the head of the family. Tools of the trade in personal property and debts, and must include any wages. May be allowed the personal assets of total value of the jewelry market of personal property up to 25% there.
Bankruptcy Lawyer in Texas, the exemption which is allowed to file bankruptcy, we will guide you through the use relate to your particular case. Cases, if the first or the best interests of your Chapter 7 bankruptcy chapter chapter 13 bankruptcy, bankruptcy lawyers and bankruptcy can answer all your questions, the status of this effort is the guide for Texas state file is taking in account of the failure.
