Texas Rangers lender parties call break-up fee 'totally inappropriate'

By Caroline Salls

Pittsburgh, July 23 - Texas Rangers Baseball Partners' lender parties said Friday that there is no need to include a break-up fee in the procedures for the proposed sale of the team's assets to Rangers Baseball Express LLC, according to a post-trial brief filed with the U.S. Bankruptcy Court for the Northern District of Texas.

The lender parties said the court has taken the proposed break-up fee provision under advisement.

"The lender parties continue to believe that any break-up fee is completely unnecessary and totally inappropriate in this case, and will only serve to increase the likelihood that the proposed auction will fail to attract qualified bidders - potentially leaving the Texas Rangers mired in bankruptcy longer than they otherwise would need to be," the lender parties said.

"Maintaining the break-up fee as part of the bidding procedures will ensure that, instead of the playing field being level for all bidders, it remains improperly tipped in favor of Rangers Baseball Express LLC."

The lender parties said the company's investment banker is now in charge of the sale process and can decide the size of the initial overbid amount and create a "built-in perpetual $10 million advantage" for the stalking horse bidder at every round of bidding.

Texas Rangers, an Arlington, Texas, baseball team, filed for bankruptcy on May 24. Its Chapter 11 case number is 10-43400.

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