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Crain's is reporting that the Cubs may file for Chapter 11 Bankruptcy protection, in order to speed the sale of the team and shelter themselves from TribCo liabilities.

 

Seems to me like an abuse of Chapter 11, as they intentionally kept the Cubs out of the TribCo filing, and the Cubs do not have material reason for bankruptcy in their own books. But whatever.

 

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QUOTE (NorthSideSox72 @ Jul 13, 2009 -> 06:45 AM)
Crain's is reporting that the Cubs may file for Chapter 11 Bankruptcy protection, in order to speed the sale of the team and shelter themselves from TribCo liabilities.

 

Seems to me like an abuse of Chapter 11, as they intentionally kept the Cubs out of the TribCo filing, and the Cubs do not have material reason for bankruptcy in their own books. But whatever.

Aside from the Phoenix Coyotes has any other major sports franchise ever filed for bankruptcy?

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QUOTE (klaus kinski @ Jul 13, 2009 -> 01:06 PM)
This is disgraceful and an abuse of the need for bankruptcy. I cant see with the cash flow they have how their creditors can get screwed so they could be sold.

 

 

I'd love it if a few creditors got together and at least tried to force them into liquidation.

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QUOTE (klaus kinski @ Jul 13, 2009 -> 01:06 PM)
This is disgraceful and an abuse of the need for bankruptcy. I cant see with the cash flow they have how their creditors can get screwed so they could be sold.

I've never practiced bankruptcy law, but trying to remember back to my law school class, I believe a judge can deny it pretty early in the process if she thinks it's an obvious attempt to abuse the system. Bankruptcy judges are usually hard asses

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QUOTE (SoxFan562004 @ Jul 13, 2009 -> 01:47 PM)
I've never practiced bankruptcy law, but trying to remember back to my law school class, I believe a judge can deny it pretty early in the process if she thinks it's an obvious attempt to abuse the system. Bankruptcy judges are usually hard asses

 

It's not an abuse of the bankruptcy court at all. In fact, it's an incredibly smart move probably concocted by somebody's savvy legal counsel. What's important to understand is that the Cubs and the Tribune Company are entirely different corporations. Even if the Tribune is the largest single shareholder, the two are simply not the same at all.

 

The cubs are considering a "pre-packaged bankruptcy." A prepack is completely different from an ordinary bankruptcy. This is not a situation where the Cubs are not paying their loans or have massive legal liabilities. In a prepack, the debtor (the cubs) will work out debt repayment obligations with its creditors (usually banks, trade creditors, etc.). The whole thing is handled by agreement. The Chapter 11 Bankruptcy process then forces anyone with a claim against the Cubs to get in line for payment. If these creditors appear in court, they can object to or stop the bankruptcy process and seek payment of their claims. If no one appears (which is likely), then any debts are wiped out.

 

The Tribune Company had huge liabilities. I'm sure Rickets is concerned about other legal issues developing down the road. Speculating on what those liabilities could be is very very difficult and unreliable - but in legal parlance, they generally focus on very difficult (but potentially huge liabilities) arising from failing to maintain corporate formalities, alter ego legal theories, unrecorded liens, etc. I'm completely speculating here because there's no way for me to know what type of claim the company could face.

 

In an ordinary merger situation, Tribune company might defend and indemnify against these liabilities by contract in the merger agreement. Since Tribco is pretty much worthless, that indemnity has no value. Consequently, the prudent course would be to simply prepack the Cubs, cleanse the company of any unknown/illegitimate claims, and move on.

 

I hate the cubs as much as anyone. - but this is hardly an abuse of the system. In fact, it actually promotes capital investment in America because without this mechanism, many investors would be skiddish and avoid even the slightest litigation risk.

 

 

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QUOTE (fathom @ Jul 17, 2009 -> 08:44 PM)
It's amazing how bad the Nationals are. It's the perfect team for the Cubs to start the 2nd half against.

They are horrific, the bottom of the 1st was a complete joke. Media and Cubs fans will overreact to this series, luckily the Cards won and the Astros are beating the Dodgers. Looks like there will be 3 teams tied for 2nd 3 games behind the Cards if things hold

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The Nationals are doing everything possible to lose these games to the Cubs. 18 base runners and 5 runs for them so far tonight. The Nationals announcers are great to listen to, as they despise the effort of their players.

Edited by fathom
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QUOTE (fathom @ Jul 17, 2009 -> 08:44 PM)
It's amazing how bad the Nationals are. It's the perfect team for the Cubs to start the 2nd half against.

 

Yeah, and they get to beat them one more time before heading back to the reality of being a .500 team. I honestly can't picture any NL Central team making the playoffs though, because they are all horrible. Seems like a perfect situation for the Astros to steal the thing because that would make no sense at all.

 

Randy Wells' massive regression to the means that is long overdue may have started tonight though. He'll hurt them down the stretch as the numbers catch up with him.

Edited by whitesoxfan101
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QUOTE (fathom @ Jul 18, 2009 -> 08:33 PM)
The Nationals are doing everything possible to lose these games to the Cubs. 18 base runners and 5 runs for them so far tonight. The Nationals announcers are great to listen to, as they despise the effort of their players.

Is it the broadcast with Dibble? Those are awesome, he'll openly call out how bad the team is.

 

To me, this is just building the funny, the fans and the media will get all stirred up over this series and will come crashing back down.

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QUOTE (fathom @ Jul 19, 2009 -> 12:56 PM)
Yes, it's the broadcast with Dibble and Bob Carpenter. Anyways, nice to see the Cubs facing a great pitcher in G. Mock today. That 2.0 WHIP is very deceiving.

 

Dan Haren's ERA is almost less than Mock's WHIP.

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If there's even been a team that you thought was on the take in games, it's the Nationals. Booting the most routine grounders, not hustling on the bases, etc. Mock's only allowed 9 base runners in 3 1/3 innings so far.

Edited by fathom
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QUOTE (fathom @ Jul 19, 2009 -> 01:43 PM)
Mock went 3 1/3 innings and allowed 10 base runners. His WHIP is near 2.05 now. Thanks for nothing Nationals!

well, the Sox gained more ground on 1st winning 2 out of 3 than the Cubs did sweeping the Nationals

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