Rangers Must Change Plan to Complete Sale

As reported before, the Texas Rangers filed for bankruptcy about 6 weeks ago after owner Tom Hicks defaulted on over $525 million in loans. Hicks has been opposing the sale of the team to a group led by Reangers' president Nolan Ryan, although everyone else, including MLB, seems to support it. Well now it seems the Texas Rangers will have to change its bankruptcy plan. A bankruptcy judge has ruled that both creditors and the team would be adversely affected by the Rangers' previous plan to pay creditors $75 million. It was not necessarily the amount that the judge rejected, but rather, that he felt some of the creditor's rights were being taken away under that plan. The judge also ruled that unsecured creditors were not adversely affected by the plan because they were scheduled to get the amount in default plus interest. Interestingly, the Rangers largest unsecured creditor is Alex Rodriguez, whom the Rangers still owe almost $25 million in deferred compensation for the contract he signed in Texas ten years ago. The judge has scheduled another hearing on July 9 when a final decision is expected to be announced so stay tuned for that...