Centerplate-Kohlberg Merger In Doubt After Funding Pulled

By Don Muret, Staff Writer, SportsBusiness Journal

National City, the bank providing $175M to finance sports concessionaire Centerplate's merger with Kohlberg & Co., sent a letter late yesterday to Kohlberg stating that it was not going to fund the transaction, according to an SEC filing. National City, which was recently bought by PNC Financial Services Group, said it would help Kohlberg find an alternative source to finance the merger. Kohlberg remains committed to closing the deal in the first quarter of '09 and is working to ensure that financing is in place, the filing said. Centerplate Dir of Communications Gael Doar did not return calls for comment on the future of the cash-strapped company should the deal fall through. Meanwhile, a complaint filed by stockholder Warren Kaplan against Centerplate to block the merger from being completed is still active in Connecticut Superior Court. Kaplan said his attorneys are waiting to see how the financing issue unfolds before making a decision whether to file a class action lawsuit. The complaint alleges Centerplate's BOD unanimously approved Kohlberg's terms without searching for a better bid.