Judge Approves Dodgers Bankruptcy Financing
WILMINGTON, Del. (AP) -- A Delaware judge has authorized the Los Angeles Dodgers to enter into a $150 million bankruptcy financing arrangement after the club satisfied certain concerns raised by Major League Baseball.
After trading sharply worded briefs over the proposed financing, attorneys for the league and the team agreed the Dodgers could proceed with their proposed financing on an interim basis pending a July 20 hearing.
The agreement includes reducing a proposed exit fee for the lending group from $4.5 million to $250,000, and removing certain deadlines regarding the sale of broadcast rights.
Earlier Tuesday, the league accused Dodgers owner Frank McCourt of siphoning off more than $100 million in revenue and driving the team into a liquidity crisis. The Dodgers said the league was trying to exert a stranglehold on the team.
(Copyright 2011 by The Associated Press. All Rights Reserved.)
