Rangers/Stars Owner Tom Hicks: “We Want The Banks To Be Reasonable”Posted on April 3rd, 2009 10:10am by Evan Grant
Filed under Bullpen, Dallas Stars, Sports business, Texas Rangers
Rangers/Stars owner Tom Hicks said he is asking bank lenders “to be reasonable” regarding the interest payment on more than $500 million in loans relating to the two clubs and the assets of Hicks Sports Group.
Before we go any further, we should probably explain to our British friends that Liverpool Football Club is not among the HSG holdings and neither are any of Hicks’ other business interests.An interest payment was due on March 31, but Hicks said Friday that HSG had elected not to make the payment. HSG is in the process of trying to negotiate with the 40 lenders to allow it to make the interest payment out of the interest reserve provision. Hicks must get approval from the banks that hold 51 percent of the loans to approve such a deal.
The banks, however, could place the loans in default early next week if a re-negotiation in terms is not reached.“We’re optimistic that a satisfactory resolution will come together in the next couple of weeks with our lenders’ cooperation,” Hicks said by phone Friday morning. “The important thing is that none of this impacts either team or the fan experience at either venue. We’re prepared to fund the operations of both clubs for the next 12 months while we continue to seek additional investors.”
Hicks announced last week that he was seeking to sell up to 49 percent of both the Rangers and Stars. Such a sale could add between $400-500 million in cash to the HSG reserves.
A financial website, citing unnamed sources, reported Friday morning that Hicks defaulted on a $350 million bank term loan, $100 million second-lien loan and a $75 million revolving credit facility.
“We just would like the banks to be reasonable and hope they will go along with our proposal,” Hicks said. “We’ve built two great teams, one with a great future and one that has been the most profitable and successful NHL franchise in the southern United States. We’ve built a great arena that is Dallas’ version of Carnegie Hall and Madison Square Garden all rolled into one. This is a short-term issue about a lot of long-term value.”
http://insidecorner.dmagazine.com/index.php/2009/04/03/rangersstars-owner-tom-hicks-we-want-the-banks-to-be-reasonable/