Judge Rejects Dodgers' Bankruptcy Plan
DOVER, Del. (AP) — A Delaware judge has rejected the Los Angeles Dodgers' proposed $150 million bankruptcy financing plan, a decision that likely will force the team to accept a financing offer from Major League Baseball.
The judge issued his eight-page decision Friday, two days after presiding over a hearing on the competing financing plans.
The team had sought approval of its proposed arrangement with hedge fund Highbridge Capital.
But the league, which has been locked in a bitter dispute with Dodgers owner Frank McCourt, countered with a competing plan that carried better financial terms.
The Dodgers rejected MLB's offer, saying it likely would result in legal battles and was an attempt by baseball commissioner Bud Selig to take control of the team and force a sale.
"Today's court ruling places the Dodgers in a position to achieve a debtor-in-possession financing from Major League Baseball, under the court's control...That is both economically favorable and consistent with the Dodgers' objective of maximizing the value of the estate in the Chapter 11 process," the Dodgers said in a statement released Friday following the ruling.
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