NHL and Moyes reach deal for Phoenix Coyotes 27/10/2009 |
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The National Hockey League and U.S. trucking magnate Jerry Moyes agreed to a deal on Monday in which the pro sports league would buy the Phoenix Coyotes franchise, paving the way for the money-losing ice hockey team to emerge from bankruptcy as early as next week.
The details of the deal between the NHL and Moyes will be submitted to the court this week, with the sale expected to close November 2 if the judge overseeing the bankruptcy approves the transaction.
The Coyotes filed for bankruptcy in May under the weight of years of heavy losses.
Last month, a U.S. bankruptcy judge in Phoenix rejected bids by both the NHL and Canadian billionaire James Balsillie, who is the co-CEO of BlackBerry maker Research in Motion for the bankrupt Phoenix Coyotes but the judge, Redfield Baum, left the door open for the NHL to resubmit its bid.
The NHL made a $140 million bid for the Coyotes in August in an effort to remove the team's sale from bankruptcy court oversight, with the intention of re-selling the team.
"It remains the NHL's intention upon taking control of the Club to stabilize the Club's operations and, as quickly as possible, to re-sell the Club to a new owner who is committed to operating the Club in the Glendale/Phoenix market," NHL Deputy Commissioner Bill Daly said in a statement.
The NHL has been assuming the team's losses since it filed for bankruptcy protection.
The NHL had accused Balsillie and Moyes of seeking to use the bankruptcy process to circumvent its rules regarding team ownership and relocation, and the judge had rejected Balsillie's bid in part because the league had dismissed him as a potential owner.
The Coyotes have never made money since moving to the Phoenix suburb of Glendale from Winnipeg, Manitoba in 1996.
Earlier bidders included a group led by Jerry Reinsdorf, owner of the Chicago White Sox and Chicago Bulls teams, and Ice Edge Holdings LLC, a group of Canadian and U.S. businessmen.
The case is in Re: Dewey Ranch Hockey LLC, U.S. Bankruptcy Court, District of Arizona, No. 09-09488.
(Source: Reuters)
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