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MCNALL BANKRUPTCY TRUSTEE TRYING TO HAVE KINGS SALE VOIDED
Published June 16, 1995
L.A. Kings Ltd., the 28% of the franchise controlled by Bruce McNall bankruptcy trustee R. Todd Neilson, filed suit yesterday alleging tha the 72% of the team transfered to Jeffrey Sudikoff and Joseph Cohen is voidable, as is Bank of America's lien on the team, according to today's L.A. TIMES. In addition, Neilson objected to terms of the proposed financing of a deal between Sudikoff and Cohen and CO billionaire Philip Anschutz and developer Edward Roski. Neilson's attorney, Leonard Gumport: "The terms of the financing needlessly give Anschutz a competitive edge over other potential bidders." Court papers also say that Sudikoff and Cohen have failed to fulfill an alleged obligation to put additional money into the Kings. Sudikoff, Cohen and Bank of America say the lawsuit is "without merit" (Lisa Dillman, L.A. TIMES, 6/16). ALL BAIL (OUT) THE KINGS: Internal documents revealed Wednesday reported an operating loss of $8M for the Kings last year, according to the L.A. TIMES. A source who viewed the records called the franchise "radioactive," writes Lisa Dillman. The team last week received an advance from Lakers and Forum Owner Jerry Buss of $500,000 to keep the franchise operational. However, Dillman reports that "of immediate concern" are unpaid payroll taxes of $1.9M and two payments of $1M to Wayne Gretzky the team owes this summer. The NHL lockout, an unfavorable lease, high payroll and the team's failure to make the playoffs all "combined to exacerbate the situation." Dillman: "In contrast, according to sources, the Mighty Ducks showed about a $9-million profit in their first season in the league -- under calm conditions, a low payroll and a favorable lease deal" (L.A. TIMES, 6/15). SHOWTIME: Credit Lyonnais Bank of France had the winning bid Thursday at an auction of films owned by McNall's Gladden Entertainment and Sherwood Productions. The winning $14M bid gave the bank control of such Mcnall-produced films as "The Fabulous Baker Boys" and "Mr. Mom" (AP/Minneapolis STAR TRIBUNE, 6/16).