Chicago Cubs file for Chapter 11 bankruptcy

[Guest Tony n Terrific]

No stimulus for baseball.

 

http://www.chicagobreakingnews.com/2009/10...a9a8cba5f0015c7

[dnoblett]

Sounds like team is fine, it is the company that owns the team (Tribune) that is having trouble, the bankruptcy is a formality to protect the people buying the Cubs from the Tribune's creditors.

 

The Chicago Cubs filed for bankruptcy today, a move designed to help Tribune Co. transfer the team to its new owners, the Ricketts family.

 

While bankruptcy typically implies debt issues, the Cubs are not in financial trouble. Rather its filing is connected to Tribune Co.'s own Chapter 11 bankruptcy case that began in December.

The baseball team and related assets were left out of Tribune Co.'s case while the parent of the Chicago Tribune was in the process of finding a new owner for the franchise. Tribune Co. put the Cubs on the market in 2007, as part of a transaction that took the media company private.

 

Now that Tribune Co. has finalized a deal to sell the team to the Ricketts family, it is passing the Cubs through bankruptcy court to give the new owners comfort that the creditors in the original case have no claim against the sold company. When it filed for bankruptcy, Tribune Co. was $13 billion in debt.

 

The Cubs' stay in bankruptcy is expected to last just one day. The bankruptcy judge in the Tribune Co. case has scheduled a hearing on Tuesday.

http://www.chicagobreakingnews.com/2009/10...a9a8cba5f0015c7