10/12 Cubs file for bankruptcy

The Cubs filed for bankruptcy on Monday, a move designed to help the Tribune Co. transfer the team to its new owners. The Cubs are not in financial trouble; the move is connected to the Tribune Co.’s own Chapter 11 bankruptcy case that began in December.

Now that the Tribune Co. has finalized a deal to sell the team to the Ricketts family, it is passing the Cubs through bankruptcy court to give the new owners comfort that creditors in the original case have no claim against the company. The Tribune Co. filed for bankruptcy in December, and at the time, was $13 billion in debt.

The Cubs’ stay in bankruptcy is expected to last one day. The judge in the Tribune Co. case has scheduled a hearing for Tuesday.

The judge already has approved Tribune Co.’s transaction with the Ricketts family. Under the terms of the deal, the Cubs, Wrigley Field and 25 percent of Comcast SportsNet Chicago will be placed in a limited partnership, and the Ricketts will own 95 percent of that. Tribune Co. will retain 5 percent.

The Ricketts family will contribute $823 million to the partnership. Tribune Co. will receive about $740 million after taxes and other adjustments.

Once the bankruptcy judge clears the Cubs’ case, the Ricketts family was expected to close the deal by the end of October.

– Carrie Muskat

 

3 Comments

Philliesphan, this is purely a procedural move to make sure that creditors of the old Tribune Company (which is in serious financial trouble) can’t go after the Cubs once they are in the hands of the new owners. All the liabilities of the Cubs (including, unfortunately, Milton Bradley’s contract) will be honored. This was widely expected. Ricketts is paying $823 million for a 95% stake.

Sure, the Cubs are not in financial trouble. Businesses file for bankruptcy all the time when they’re not in trouble. And, if you believe that, I’ve got a bridge in Brooklyn I’d like to sell ya.
Looks like another year without a World Series Championship is not the only bad news for Cubs fans. Wow.
All I can say is, GO PHILS!!!!!!
P.S. The curse of Bartman continues!!!!!!

Maybe the Cubs can dump a couple of bad contracts during that short period they are in bankruptcy!!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 260 other followers

%d bloggers like this: