This is a follow up to Nolan Ryan’s letter to the fans. You can also read more about the MLBs plans to seize control of the Rangers here.
FAQ about Chapter 11
1. Why do the Rangers need to file for Chapter 11 in order to complete the sale to new owners?
Texas Rangers Baseball Partners, the current owner of the Texas Rangers Baseball Club, and Rangers Baseball Express, the local investor group led by team president Nolan Ryan and Chuck Greenberg, have a plan to facilitate the completion of the previously announced sale of the Club to the Greenberg?Ryan group. We think the sale is in the best interests of the Rangers franchise and fans.
For the past several months, there has been resistance by a group of creditors to this sale. We’ve chosen to implement the sale through a voluntary, “prepackaged,” court?supervised process because Chapter 11 is an orderly process that enables us to overcome the creditors’ objection and expeditiously transfer Rangers ownership to the Greenberg?Ryan group while protecting the franchise’s baseball operations. Upon approval by the Court, our plan will pay all creditors in full, including 100 percent of the Rangers’ debt to the creditors. This process, which will have no impact on Rangers baseball or business operations, is the best way to complete the sale and smoothly transition to new ownership.
2. Is there risk of the Rangers going out of business or the franchise being terminated?
Not at all. This process will have no impact on Rangers baseball or business operations. It is simply a legal mechanism that helps to complete the sale, and the team expects to exit from Chapter 11 in just a few months.
3. What is a pre?packaged Chapter 11 filing?
In a “prepackaged” Chapter 11 filing, a company (in this case, a baseball club) obtains any necessary approvals prior to filing. Because so much of the work has been done in advance of the filing, the court?supervised portion of the process can be completed in a much shorter period of time than other Chapter 11 reorganizations, and with less disruption to the operations of the business.
4. Will the sale and filing cause any change in Texas Rangers Baseball Club operations?
No. Maintaining a world-class Ballpark experience is our top priority. We will play our full schedule of games and continue to honor and sell tickets, and our fan programs remain in place. We expect to continue paying our vendors for goods and services we receive during this time, and to pay our players and our valuable employees.
5. Will all individual, group, season and other tickets still be honored?
Yes, in accordance with our usual policies.
6. Will the Rangers be able to do all the things necessary to perform well on the field?
Yes. The Rangers will be able to operate within their existing budget to sign and acquire amateur, international and professional players. The team will complete this process before the next free-agent signing season, and it will be ready for that, as well. The Rangers are committed to winning their division, the pennant and World Series, and are committed to long?term success.
7. What happens next in the court process? How long is this process expected to last? When will the sale be completed?
The parties have requested that a hearing be held in 45 days to confirm the proposed sale and plan of reorganization. Once the court’s confirmation is received, the sale will be able to be officially completed and the Rangers will exit Chapter 11 and emerge under new ownership. Prior to that, there will be hearings to assure that the operations of the Texas Rangers organization continue to perform business as usual.
My Take: I hope that the creditors, current owners, Ryan’s buyer group, and the MLB can reach an agreement for the sale of the Rangers. This has been a slow moving process, which has been at a stalemate for the last few months.
Related posts:
- Nolan Ryan’s Letter To Fans
- MLB To Seize Control Of The Rangers
- Express On The Last Train Out Of Town?