Bankruptcy judge to consider Cubs sale
Tribune Co. asked the judge overseeing its bankruptcy case to approve the sale of the Chicago Cubs baseball team, saying it will bring $740 million in cash to the company's creditors.
The filing follows last week's announcement that the more- than 100-year-old team would be bought by the family of TD Ameritrade Holding Corp. founder Joe Ricketts for $845 million.
After certain adjustments to the sale are made, Tribune will receive $740 million in cash, plus a 5 percent stake in the Cubs. The money and the Cubs stake would be used to repay creditors owed as much as $13 billion, according to court papers filed yesterday in Wilmington, Delaware.
Chicago-based Tribune is seeking quick approval of the sale from U.S. Bankruptcy Judge Kevin Carey, arguing that the team may be “irreparably harmed as a result of damage to the Cubs' unique brand and the uncertain, and potentially severe, ramifications on a Major League Baseball franchise from an extended stay in bankruptcy.”
Under the legal strategy outlined by company lawyers in court papers, Tribune will first ask Carey for permission to formally sign the sale agreement and several related contracts with the Ricketts family. After that, Tribune will place the main holding company for the team, Chicago National League Ball Club LLC, into bankruptcy. Tribune would seek a final round of approvals from Carey right after Chicago National files for bankruptcy.
Tribune filed for bankruptcy court protection in December, about a year after billionaire real estate developer Sam Zell led the $8.3 billion purchase of the publishing and television company. Tribune owns the Los Angeles Times and the namesake Chicago newspaper among other properties.
The first hearing on the sale is scheduled for Sept. 24.
The case is In re Tribune Co., 08-13141, U.S. Bankruptcy Court, District of Delaware (Wilmington).