Phoenix Coyotes auction to be open to any and all bidders, court says

By Alice Popovici

New York, Aug. 6 - A federal judge ruled Wednesday that Dewey Ranch Hockey LLC's Sept. 10 auction for the sale of the Phoenix Coyotes should be open to any and all bidders, including those that would relocate the team from Glendale, Ariz., according to a filing with the U.S. Bankruptcy Court for the District of Arizona.

As previously reported, the National Hockey League asked the court to postpone the auction, but Wednesday's ruling indicated that it would still be held on that date.

The request for a delay was opposed by Dewey Ranch's largest secured creditor, its unsecured creditors and PSE Sports & Entertainment, a bidder who would acquire and relocate the hockey team to southern Ontario.

"Both sides make legitimate and compelling points to support their respective positions," the court document stated.

But the court added that it decided that "the auction on September 10, 2009 should be open to any and all bidders including, but not limited to, P.S.E."

"Recognizing that this decision probably expands the issues for the auction," the court set a scheduling hearing for the auction on Aug. 11.

The National Hockey League had asked the court to postpone the hearing until after the 2009-2010 hockey season. The league said it has spent months actively seeking a buyer for the team, including negotiations with two prospective buyers.

However, the NHL said both prospective buyers have asked for more time to perform due diligence, secure financing and negotiate a sale agreement.

The league said it also processed background applications and decided that Dewey Ranch's original prospective buyer, Jim Balsillie, who leads PSE, was not suitable to own an NHL team.

The court previously denied the company's original $212.5 million agreement to sell the team to PSE in June after the NHL fought against the sale, which would have moved the Coyotes to Ontario.

Although it was not yet able to determine the suitability of potential bidder the Ice Edge Group, which is led by Anthony LeBlanc, the league said it has encouraged the group to complete its NHL application and work to finalize a qualified bid.

In addition, the league said an offer submitted by the Reinsdorf Group, led by Jerry Reinsdorf, which is dedicated to keeping the team in Glendale, Ariz., "presents a significant opportunity to sell the team."

According to the motion, the Reinsdorf Group is close to reaching a deal with the city of Glendale, which is a significant contingency to its bid.

Dewey Ranch and Arena Management Group, LLC, Coyotes Holdings, LLC and Coyotes Hockey, LLC are the owners of the Phoenix Coyotes National Hockey League team. The owners filed for bankruptcy on May 5. Their Chapter 11 case number is 09-09488.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.