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MLB Rangers Ask For Allowance To Pay For Restructuring Advice
Published June 8, 2010
The MLB Rangers asked a federal bankruptcy court yesterday to allow the team to pay investment bank Perella Weinberg Partners at least $1.5M for restructuring advice, according to court documents. The Rangers late last month filed for Chapter 11 bankruptcy protection, seeking to overcome creditors' objections to a sale of the club to a group led by Nolan Ryan and Chuck Greenberg. The two sides are gearing up for potentially make-or-break hearings next week in the U.S. Bankruptcy Court for the Northern District of Texas. Perella Weinberg has been one of the advisers to the team since May 7, 2009, according to a letter included as an exhibit in yesterday's fillings. According to the terms of that engagement letter from Perella to the Rangers, the team would already have paid about $5M. The new agreement would, in addition to the $1.5M, have an $87,500 monthly retainer. The creditors could object to these fees. A lawyer for the creditors did not immediately return calls. During the months of haggling between January and May, the creditors succeeded in reducing the team's investment banking fees committed to Perella, Merrill Lynch and Raine, sources said. However, all those gains were taken away by the bankruptcy filing.