12-08-2008, 05:48 PM
Crain's on Bankruptcy
<!--quoteo-->QUOTE <!--quotec-->“The sales process for the team, ballpark and related assets continues and its timetable for completion remains unchanged by today’s announcement by Tribune,” the team said in a statement.
Still, experts say it’s likely a bankruptcy court judge would have to approve Tribune’s sale of the ball team, Wrigley Field and 25% stake in Comcast SportsNet, which would allow creditors to have a say in the transaction.
But that process could go quickly, especially since Tribune has undergone an 18-month-long process to find a buyer, experts say.
“It would mean that the creditors would have a bigger seat at the table, but they’ll be every bit as interested as Sam Zell is in getting money quickly,” says Douglas Baird, a law professor and bankruptcy expert at the University of Chicago, who isn’t involved in the process.
Mr. Baird says bankruptcy courts are accustomed to companies that look to sell assets immediately after seeking bankruptcy protection. He points to Lehman Bros. Holdings Inc., which sold its U.S. operations to Barclays PLC within days of filing Chapter 11 in September.
“This should not affect the timetable of the sale of the Cubs,” said Doug Lipke, head of the bankruptcy group at Vedder Price P.C. in Chicago, who is not involved in the process. “You can sell assets very quickly in a bankruptcy case.”<!--QuoteEnd--><!--QuoteEEnd-->
<!--quoteo-->QUOTE <!--quotec-->“The sales process for the team, ballpark and related assets continues and its timetable for completion remains unchanged by today’s announcement by Tribune,” the team said in a statement.
Still, experts say it’s likely a bankruptcy court judge would have to approve Tribune’s sale of the ball team, Wrigley Field and 25% stake in Comcast SportsNet, which would allow creditors to have a say in the transaction.
But that process could go quickly, especially since Tribune has undergone an 18-month-long process to find a buyer, experts say.
“It would mean that the creditors would have a bigger seat at the table, but they’ll be every bit as interested as Sam Zell is in getting money quickly,” says Douglas Baird, a law professor and bankruptcy expert at the University of Chicago, who isn’t involved in the process.
Mr. Baird says bankruptcy courts are accustomed to companies that look to sell assets immediately after seeking bankruptcy protection. He points to Lehman Bros. Holdings Inc., which sold its U.S. operations to Barclays PLC within days of filing Chapter 11 in September.
“This should not affect the timetable of the sale of the Cubs,” said Doug Lipke, head of the bankruptcy group at Vedder Price P.C. in Chicago, who is not involved in the process. “You can sell assets very quickly in a bankruptcy case.”<!--QuoteEnd--><!--QuoteEEnd-->