Frank McCourt’s plan to save his ownership for the Los Angeles Dodgers took a step backward because of a ruling from a Delaware bankruptcy judge.
The Associated Press reports the judge rejected the Los Angeles Dodgers’ proposed $150 million bankruptcy financing plan, a decision that likely will force the team to accept a financing offer from Major League Baseball.
The judge issued his eight-page decision Friday, two days after presiding over a hearing on the competing financing plans.
The team had sought approval of its proposed arrangement with hedge fund Highbridge Capital.
But the league, which has been locked in a bitter dispute with Dodgers owner Frank McCourt, countered with a competing plan that carried better financial terms.
The Dodgers rejected MLB’s offer, saying it likely would result in legal battles and was an attempt by baseball commissioner Bud Selig to take control of the team and force a sale.
Latimes.com reports: “The ruling does not mean McCourt will lose ownership of the Dodgers. Instead, the ruling sets the stage for the parties to argue the core issue in this case: Can McCourt auction the Dodgers’ cable television rights to pay off the team’s creditors and remain the owner, or can Selig get the court to enforce the league rules to which McCourt agreed, including rules that grant Selig the right to approve all television contracts and the right to strip an owner of his team upon filing for bankruptcy?”
The website has a copy of the decree from Judge Kevin Gross.