Mediation Session Between MLB Rangers, Creditors Canceled

Canceled Mediation Session Had Been Ordered By The Court

The court-ordered mediation scheduled for Thursday between the MLB Rangers and creditors of the team has been abruptly canceled, sources said. The news comes as the two sides are currently in a bankruptcy hearing to determine whether the sale of the team to a group led by Chuck Greenberg and Nolan Ryan will proceed. A federal bankruptcy court judge last month scheduled the mediation between the two sides. The creditors want the team to be auctioned again, complaining the Greenberg offer was not the highest the club received. Why the mediation has been canceled is unclear, though it could mean the judge realizes the results of the hearing will be decisive enough to render mediation moot. The Rangers filed for chapter 11 bankruptcy protection on May 24 after the creditors refused to release their liens on the club. The team’s parent company had defaulted on its debt March 31, 2009, and later that year put the team up for sale (Daniel Kaplan, SportsBusiness Journal).

MORE FROM THE HEART OF TEXAS: Stars Owner Tom Hicks in an e-mail yesterday confirmed that the "sale of the team is down to two groups," though he would not elaborate on the process. Hicks: "As you know, we are doing as quiet a process as possible. We hope to finalize before the new season starts." Former Stars President Jim Lites and Stars C Mike Modano referred questions about their ownership group, which is out of the running, to their partner Billy Quinn (DALLAS MORNING NEWS, 6/15). WHL Portland Winter Hawks President Doug Piper said that even if team Owner Bill Gallacher were to purchase the Stars, "moving to Portland would be nearly impossible to pull off." Piper: "Paul Allen and the Trail Blazers control the Rose Garden. There's no place to come to in this market unless (Allen) lets somebody use the arena, and I can't see him doing that because an NHL team would be competition" (Portland OREGONIAN, 6/15).