U.S. Bankruptcy Court Judge Bernard Markovitz "hedged
at approving" the Penguins' $20M loan from Societe Generale
because he was "unhappy with loan provisions that left the
team owing open-ended fees," according to Ann Belser of the
PITTSBURGH POST-GAZETTE. Markovitz said that "he didn't
like" the Penguins having to pay $50,000 once the loan
commitment letter was signed, with additional expenses
billed at closing, and that the team had already paid
$25,000 toward the expenses without his approval.
Markovitz: "If reasonable fees were requested and submitted,
we would approve them." Penguins bankruptcy attorney Robert
Sable said Societe Generale's offer of $20M at 1% above the
prime lending rate was "the best deal available." Bank of
America wanted 2.5% above the prime lending rate and offered
only $13M, and PNC Bank and Bank of Boston wouldn't loan the
team money. Sable said that the Penguins would lose $16-17M
this season, and the loan was "vital to the operation of the
team" (PITTSBURGH POST-GAZETTE, 11/20). Sable: "I just
don't know where else to go" (Pitt. TRIBUNE-REVIEW, 11/20).
