The Los Angeles Dodgers and four affiliated companies filed for bankruptcy this morning in Delaware Bankruptcy Court. In a statement, Dodgers’ owner Frank McCourt stated that the filing was done “in order to protect the franchise financially and provide a path that will enable the Club to consummate a media transaction and capitalize the team.”
McCourt also blamed MLB Commissioner Bud Selig for forcing the Dodgers to file bankruptcy, claiming that Selig “turned his back on the Dodgers” and “knowingly and intentionally expose[d] the Dodgers to financial risk.”
McCourt appears to have obtained an offer of $150 million of “debtor in possession” (DIP) financing from JP Morgan Chase to provide the Dodgers with the cash needed to get through the bankruptcy. The financing must be approved by the Bankruptcy Court before it can become effective. If approved, JP Morgan Chase would obtain a “super-priority” status, insuring that it would be paid ahead of most other claims against the Dodgers in the bankruptcy.
I will post more here as soon as the dust settles. But a few quick and preliminary notes follow the jump.
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