Maury Brown in The Biz of Baseball has some highlights of today's confirmation hearing to approve the auction process and the club's pre-packaged bankruptcy plan. The hearing, going on now, revealed that Tom Hicks won't have any part of the team now because that's been stripped based on the auction. Here's part of Brown's entry:
Maybe the biggest news has little monitary implications, but has a lot to do with public relations. Tom Hicks will be removed completely from any ownership role within the organization. Prior, Hicks was going to be given less than 1 percent ownership equity with Greenberg/Ryan with the ceremonial title of Chairman Emeritus. That has now all been stripped.
The total assessed value of the deal, including cash and debt obligations totals $593 million, or approx. $73 million they had on the table before the auction started.
The lenders gained approx. $100 million through the process.
In other words: Wednesday was a good day for the lenders. Brown also has this note:
At the hearing, Judge Lynn said to Jessup, that he thanked Cuban and Crane for bowing out when they did, and that he admitted, the majority of fans got who they wanted. Saying that both were exceptionally gracious after conceding to Greenberg and Ryan.
There will be tweaks to the plan today, addressing concerns by the MLBPA and former Rangers players, such as Alex Rodriguez surrounding deferred compensation owed the players. The MLBPA filed a limited objection to the amended plan that the Rangers have been working on that Greenberg/Ryan would comply to, that asks for, “adequate assurance of future performance within the meaning of Bankruptcy …. and cure of defaults within the meaning of Bankruptcy Code section.” The latter would address current players that are owed deferred compensation while the former would guarantee future money payments that must be set aside in escrow for players that can then be drawn for their deferred compensation.
We'll have more once more information is available.