'The judge approved the request despite an objection from Adelphia's Official Committee of Equity Security Holders, which said it was given inadequate notice about the arrangement.'
Archives for January 14, 2003
'U.S. Bankruptcy Judge Robert Gerber agreed to a request by the cable company to subordinate $174 million in claims against the National Hockey League team and move Adelphia behind Cerberus Capital Management LP in the creditor line. Cerberus has agreed to lend the Sabres about $23 million to cover the team's debts.'
'Judge Michael J. Kaplan approved the credit, which acts as a revolving line, meaning the Sabres will have revenue coming in and money to expend, said Dan Brown, an attorney for Erie County.'
'On the day the Buffalo Sabres became the second NHL franchise in a week to declare bankruptcy, the league signed a $1 million sponsorship deal with the Kellogg Company.'
'The scary thing is, it could get worse.'
In light of Monday's Chapter 11 filing and the possibility that Mark Hamister's bid for ownership will be withdrawn due to New York State's refusal to grant up to $30 million in funding for HSBC Arena improvements, the distinct possibility exists that the Sabres may not remain in Buffalo next year. One of the cities mentioned, as a future home of the Sabres, is Portland, Oregon, predicated on Microsoft co-owner Paul Allen taking a legitimate stab at buying the Sabres. Residing just up the Interstate from Portland, I'd like to shoot a few holes into this scenario.
'The Sabres' next two road games – Thursday against the San Jose Sharks and Saturday against the Phoenix Coyotes – will not be shown on local television.'
'C Chris Gratton has one goal in his last 24 games.'
'"The Sabres signed a non-relocation agreement in 1995, and if the Sabres tried to breach that, the county would file a claim for all the damages flowing from that move," Savino said. "We would become a creditor in the Bankruptcy Court case, and our claim would be sizable."'
'And there's a chance they might not receive a cent of what's coming to them.'