Tuesday, June 16, 2009

Judge Rejects Sale of Coyotes


According to TSN:
The Phoenix Coyotes are staying put for now, Hamilton is still on the outside looking in, and the NHL has managed to turn away Jim Balsillie once again.

Arizona bankruptcy Judge Redfield T. Baum rejected the Canadian billionaire's bold bid for the insolvent team Monday, saying in a 21-page ruling that there wasn't enough time to deal with all the unresolved issues raised by the unprecedented case.

Balsillie had sought to buy the Coyotes out of Chapter 11 protection with a US$212.5 million offer that was conditional on being able to move the team to Hamilton. He had set a June 29 closing date for the sale in an attempt to speed through the process and have the club in place for the 2009-10 season.

But Baum wouldn't have it.

There were a myriad of legal issues to deal with, including how much the NHL would get as a relocation fee, and not much time to sort them out. There was also a tentative auction set for June 22 looming.

"Simply put, the court does not think there is sufficient time (14 days) for all of these issues to be fairly presented to the court given that deadline," Baum wrote.

The ruling is a victory for the NHL, which had argued that the bid was designed to skirt league rules on the transfer of ownership and relocation and should be rejected for that reason.

No comments: