On January 21, 2012, the Los Angeles Dodgers filed the plan with the bankruptcy court to exit their bankruptcy filing by April 30. The plan includes paying off all their debts after the team is auctioned off. The team is pushing to exit bankruptcy quickly and that’s why they filed this plan with the bankruptcy court. In the bankruptcy filing document, it states the Dodgers will pay off all their creditors at a total of $643 million. Under this plan and agreement with a Major League Baseball, the team is to be sold and transferred prior to the end of April, 2012.
There has been a lot of hubbub on the news of who’s interested in buying the Dodgers out of the bankruptcy. In a statement from the team yesterday, “The Dodgers are not only a storied franchise with truly global appeal, but also present that attractive potential for strong cash flow and significant value enhancement. “
To emerge from the bankruptcy filing successfully, the Dodgers need to have their reorganization plan approved by US Bankruptcy Judge Kevin Gross. According to all involved, the team believes that approval will be no problem and they will emerge from the bankruptcy filing no later than April 30.
After filing for bankruptcy back in June, the troubled team has battled with MLB and Fox Sports. Frank McCourt felt it was best and agreed to sell the team to settle all the lawsuits and disputes.
It will be interesting to see who the new owner of the Dodgers will be after emerging from the bankruptcy filing. Interested bidders include Rick Caruso an LA real estate developer, SAC hedge fund manager, Steve Cohen and a group of partners from Guggenheim Partners LLC that includes, former Lakers star, Magic Johnson.