Mario Lemieux's plan to save the Penguins "received a
boost" yesterday with an endorsement from the team's
unsecured creditors, according to Ann Belser of the
PITTSBURGH POST-GAZETTE. The creditors, who are owed around
$10.5M, reached the agreement this week with Lemieux to
support his refinancing plan. But if the team is dissolved
and its assets sold, the creditors "could lose all of their
money." Joel Walker, who is an attorney for the creditors,
said that the agreement calls for them to receive $2M when
the plan is initiated followed by annual payments of
$850,000, for a total of $10.5M. The SMG/Fox plan would
only provide $3.2M to the creditors, with the possibility of
more if the companies can raise more than $27M to buy the
team (POST-GAZETTE, 6/18). Also in Pittsburgh, Kris Mamula
puts the Penguins' number of unsecured creditors at 300 and
writes that they are owed "as much as" $13M. If Lemieux's
plan is approved, the creditors will receive "roughly" $.20
on every $1.00 owed. The balance, or $.80 of every $1.00,
will be paid over ten years (TRIBUNE-REVIEW, 6/18).
TOUGH ON SMG: A POST-GAZETTE editorial, under the sub-
header, "SMG Should Be Part Of The Solution, Or Hit The
Road," states that SMG "is beginning to look like Darth
Maul" in its attempts to keep the Penguins in Pittsburgh.
If SMG doesn't "participate soon, the mayor [Tom Murphy]
could get even tougher -- by kicking SMG out the door and
down the turnpike" (PITTSBURGH POST-GAZETTE, 6/18).
