US trustee objects to Dodgers financing plan
Friday, July 15, 2011
DOVER, Del. (AP) -- A U.S. bankruptcy trustee objects to the Los Angeles Dodgers' proposed bankruptcy financing, saying the team has not disclosed enough information about its loan arrangement with a hedge fund.
The trustee argued in court papers Friday that a Delaware judge who will hold a hearing Wednesday should deny the club's $150 million bankruptcy financing plan with Highbridge Principal Strategies.
The trustee argues that the plan includes a $4.5 million deferred commitment fee to Highbridge that was not properly disclosed. It also says there is a lack of information about any additional fees and obligations that might be required of the Dodgers or team owner Frank McCourt.
The Dodgers' financing plan also is being challenged by Major League Baseball, which says it can offer the team a better deal.