The Dallas Stars hockey team, the last professional sports club owned by former billionaire Thomas Hicks, filed for bankruptcy with a plan to sell the franchise through a court-approved auction.
Vancouver-based businessman Tom Gaglardi has agreed to be the lead bidder in the auction, with an offer that includes about $50 million in cash and $100 million in new debt promised to senior lenders.
The team owes lenders, including an affiliate of the National Hockey League, $448.5 million, according to court documents filed yesterday in U.S. Bankruptcy Court in Wilmington, Delaware. It said its assets are worth between $100 million and $500 million. A precise figure wasn't immediately available.
"Crushing debt and a protracted out-of-court sales process have marked the last few years of the debtors' history," the team said, referring to efforts to sell the team.
Hicks, who fell off the Forbes list of billionaires in 2010, sold his stake in the Liverpool Football Club in the U.K. and last year put the Texas Rangers baseball team into bankruptcy, where it was sold at a court-supervised auction. Hicks invested cash and loans worth about $150 million into the team.
Gaglardi and his family own Sandman Hotels, Inns & Suites, Denny's Restaurants and the Kamloops Blazers Hockey Team.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/09/16/bloomberg_articlesLRMXB00YHQ0X.DTL#ixzz1YOwxoQHP
Vancouver-based businessman Tom Gaglardi has agreed to be the lead bidder in the auction, with an offer that includes about $50 million in cash and $100 million in new debt promised to senior lenders.
The team owes lenders, including an affiliate of the National Hockey League, $448.5 million, according to court documents filed yesterday in U.S. Bankruptcy Court in Wilmington, Delaware. It said its assets are worth between $100 million and $500 million. A precise figure wasn't immediately available.
"Crushing debt and a protracted out-of-court sales process have marked the last few years of the debtors' history," the team said, referring to efforts to sell the team.
Hicks, who fell off the Forbes list of billionaires in 2010, sold his stake in the Liverpool Football Club in the U.K. and last year put the Texas Rangers baseball team into bankruptcy, where it was sold at a court-supervised auction. Hicks invested cash and loans worth about $150 million into the team.
Gaglardi and his family own Sandman Hotels, Inns & Suites, Denny's Restaurants and the Kamloops Blazers Hockey Team.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/09/16/bloomberg_articlesLRMXB00YHQ0X.DTL#ixzz1YOwxoQHP
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