Texas Rangers Sued by Would-Be Buyers
Investors, including Nolan Ryan and attorney Chuck Greenberg, say team is pursuing sale talks in violation of earlier agreement.
July 19, 2010
The prospective buyers of the Texas Rangers filed a lawsuit against the baseball franchise last week accusing the team of breaching a sales agreement.
The buyer's group, Rangers Baseball Express LLC, said in the lawsuit that the team is actively "soliciting and negotiating" with rival purchasers in direct violation of the purchase agreement it entered into prior to the team's Chapter 11 filing.
The would-be investors, who include Hall of Fame pitcher Nolan Ryan and sports attorney Chuck Greenberg, are asking that the court either approve the sale of the Rangers on the original terms or instruct the team to pay the Ryan-Greenberg group damages stemming from the contract violation.
The Rangers filed for Chapter 11 in May to facilitate the sale to the Rangers Baseball Express.
However, lenders to team owner Tom Hicks's HSG Sports Group LLC protested the deal, and the baseball team relented, agreeing to test the bid at auction.
Chief restructuring officer Tom Snyder then called off the auction, and Rangers Baseball Express subsequently learned that Snyder was continuing discussions with other potential bidders.
The would-be buyers said a delay may result in their not being able to purchase the team. The group's debt and equity commitments to finance the purchase expire if the transaction is not consummated by August 12.
A bankruptcy judge is scheduled to consider the sale at a July 22 hearing.
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