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Published on 11/16/2011 in the Prospect News Distressed Debt Daily.

Los Angeles Dodgers files suit against Fox, alleges sale interference

By Caroline Salls

Pittsburgh, Nov. 16 - Los Angeles Dodgers LLC filed a lawsuit Wednesday against Fox Sports Net West 2, LLC, claiming Fox is interfering with the sale of the Dodgers and its assets, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, Los Angeles Dodgers said Fox sent a cease-and-desist letter to Blackstone Advisory on Nov. 9. In that letter, Fox said Blackstone was "soliciting interest and/or bidders for a sale of the future media rights for the Dodgers and has represented to potential bidders for the team that it is in a position to negotiate a sale of the future media rights for the Dodgers."

The company said Fox falsely alleged that Blackstone has engaged in tortious interference, and Fox demanded that Blackstone immediately stop soliciting or accepting bids for the telecast rights or negotiating a transaction.

Fox has also demanded that Blackstone "correct any prior false statements that it has the authority or legal right to solicit or accept any bids for the telecast rights to Dodgers games prior to Nov. 30, 2012."

Los Angeles Dodgers said the letter is an attempt to interfere with the sale of the team and its assets and is an impermissible exercise of control over its property.

The company is asking the court to enforce the automatic stay imposed by its bankruptcy filing and permanently bar Fox from violating it.

Los Angeles Dodgers is also seeking damages, arguing that Fox is in contempt of court for violating the automatic stay.

Major League Baseball team Los Angeles Dodgers filed bankruptcy on June 27. The Chapter 11 case number is 11-12010.


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