Los Angeles Dodgers files plan of reorganization based on equity sale

By Caroline Salls

Pittsburgh, Jan. 20 - The Los Angeles Dodgers filed a plan of reorganization Friday with the U.S. Bankruptcy Court for the District of Delaware.

According to a company news release, the plan fully resolves the financial challenges confronting the Dodgers through a sale of all of the equity of the company, which will result in a change in ownership of the team.

As a result of the intended sale and the related reorganization, all creditor claims will be satisfied in full either through their assumption by the reorganized debtors or by the payment of cash from proceeds from the sale of the Dodgers, the release said.

"The Dodgers are not only a storied franchise with truly global appeal, but also present the attractive potential for strong cash flow and significant value enhancement," the company said in the release.

"The combination of these unique attributes is helping to drive significant interest from potential bidders in the Dodger sale process.

"The Dodgers expect to identify the highest and best bid prior to the confirmation hearing, which is anticipated to be in April."

Specific creditor treatment will include:

• Holders of priority non-tax claims will be paid in full in cash from sale proceeds;

• Holders of secured claims will either retain their lien on the assets and be paid by the reorganized company when the claim comes due or be paid in full in cash;

• Holders of general unsecured claims will receive cash from the sale proceeds equal to 100% of their claim, plus simple interest at the Federal judgment rate of 0.17%;

• Intercompany claims and existing interests in subsidiary debtors will be reinstated; and

• Holders of existing interests in the Dodgers' holding company will receive initial distributable sale proceeds on the plan effective date and remaining distributable sale proceeds when available.

The debtors said they expect the plan to take effect by April 30.

Major League Baseball team Los Angeles Dodgers filed for bankruptcy on June 27, 2011. Its Chapter 11 case number is 11-12010.

© 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.