A US bankruptcy judge turned down both bids for the Phoenix Coyotes on the eve of the new National Hockey League season, nixes a relocation bid to Canada but leaving hope for an NHL takeover.
Redfield T. Baum's 31-page ruling unveiled on Wednesday smacked down the efforts of Blackberry creator Jim Balsillie, a Canadian billionaire, to buy the team and move it to the Hamilton area.
While he rejected the NHL's current offer as well, he did say he would favor an amended NHL offer that provided more money to Coyotes owner Jerry Moyes, who took the team into bankruptcy against NHL wishes, and ex-coach Wayne Gretzky.
"The court is passing the puck to the NHL, who can decide to take another shot at the sale net or it can pass off the puck," Baum wrote.
The NHL bid 140 million dollars and said it would pay all unsecured creditors in full except Moyes and Gretzky, the NHL all-time scoring king who served as coach and part-owner.
Moyes and Gretzky would get only a share of what remained. Moyes says he has loaned the club about 100 million dollars while Gretzky is owed 22.5 million dollars.
"One of the prime policies of bankruptcy is equality of distribution among creditors," Baum wrote. "There has been no determination that the Moyes and Gretzky claims are not 'legitimate creditors'.
"It would be inherently unjust for this court to deprive them of their possible rightful share of any proceeds without first providing all involved a fair trial on their claims."
In other words, if the NHL is willing to pay off them as well, it can have control of its team again and end the embarassing nightmare.
Far from saying they would boost their bid, the NHL responded only by saying it would review its options.
"We are pleased the bankruptcy court has confirmed the league?s rights to select its owners and the location of its franchises," NHL deputy commissioner Bill Daly said in a statement.
"We are reviewing the opinion and considering how we can best address the Court?s concerns regarding our offer to purchase the Coyotes. It remains our goal to secure the long-term stability of the Coyotes in Glendale."
Nearly five months after the Chapter 11 bankruptcy reorganization fight began with Balsillie making a move to grab the team and relocate it over the NHL's objections, Baum went against Balsillie on key points.
The 242 million-dollar offer by Balsillie, who failed in prior efforts to obtain the NHL's Pittsburgh Penguins and Nashville Predators, was thwarted to Baum because the NHL has the right to decide who owns a team and where it plays.
"This conclusion effectively is the end for the efforts of Balsillie, Moyes and the Coyotes to force a sale and relocation of the hockey team," Baum wrote.
Copyright 2009 AFP American Edition
