The Penguins "were expected to file in U.S. Bankruptcy
Court for protection from their creditors, possibly as soon
as today," according to sources of Schmitz & Kovacevic of
the PITTSBURGH POST-GAZETTE. Filing under Chapter 11 would
allow the team to reorganize their finances, "including
renegotiating contracts they could no longer afford."
Penguins VP/Communications Tom McMillan said that the team
would prefer to resolve the issue out of court, but added
that "bankruptcy has been an option and continues to be an
option." Schmitz & Kovacevic write that any action wouldn't
affect the team's day-to-day operations, including scheduled
games and employees' pay. NHL Commissioner Gary Bettman,
citing the NHL constitution which states owners "risk
forfeiture" should they declare bankruptcy, said that he
"would exercise his authority to take over the franchise."
Neither co-Owner Roger Marino nor Howard Baldwin could be
reached for comment (PITTSBURGH POST-GAZETTE, 10/13). The
bankruptcy option was first reported by the TORONTO SUN's Al
Strachan (TORONTO SUN, 10/10). Meanwhile, Marino's attorney
James Weisman asked the Public Auditorium Authority "to
withdraw" its lawsuit against Marino. He said that the suit
has prompted a "prominent local company" to reconsider its
team sponsorship (PITTSBURGH POST-GAZETTE, 10/11).
