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JPMorgan Chase is suing the Texas Rangers, claiming the bankrupt baseball team breached the terms of a loan by taking over the lease for its stadium, Rangers Ballpark.

Transferring the lease to Texas Rangers Baseball Partners made it harder for lenders to collect at least $411m owed by the team’s owner, Hicks Sports Group (HSG), JPMorgan said in a lawsuit filed on July 16 in the US Bankruptcy Court in Fort Worth, Texas.

When HSG borrowed the money, it agreed that certain units and affiliates would help pay back the loan if necessary, according to court papers. The HSG unit that controlled the lease was obligated to repay the full amount while Texas Rangers Baseball Partners was liable only for $75m, JPMorgan said in court documents.

After filing for bankruptcy in May, the Rangers sought court permission to sell the club to a group led by Hall of Fame pitcher and team president Nolan Ryan and attorney Chuck Greenberg in a transaction valued at more than $500m.

US bankruptcy Judge D. Michael Lynn ordered the team be put up for auction on August 4, with the Ryan-Greenberg group acting as the lead bidders. He will then consider approving the company’s bankruptcy exit plan, which details how the money generated from a sale would pay creditors, reports Bloomberg.

Creditors have until July 28 to vote on the plan, which means they will not know the outcome of auction when they cast their ballots. Lynn must take those votes into consideration when deciding whether to approve the bankruptcy exit plan.

Lenders, led by JPMorgan, oppose the sale, arguing that it does not give competitors time to prepare.

JPMorgan, the agent for investors who loaned the money to HSG, asked the judge to declare the transfer null and void because it violated the mortgage on the property. The lease on the stadium in Arlington, Texas, is collateral for the loan, according to court documents.