Lenders Unlikely To Act On Deadline For Devils' $77M In Debts

Today is the deadline for the Devils to settle their $77M debt, but it is "expected that the team's lenders will remain patient while waiting" for Owner Jeff Vanderbeek to "complete the refinancing of that debt and the restructuring of the ownership group." Indications are that Vanderbeek "will not settle the debt" before the deadline, which would "allow the banks to force the team into bankruptcy" (NORTHJERSEY.com, 8/13).

The lenders "appear willing to wait for a resolution until after the completion" of the NHL's new CBA. Sources said that Vanderbeek is "deep in discussions to sell a stake of the team" for $35M, and he also has secured "at least one" limited partner. All the while, he is putting "more of his own cash into the club to bring the total amount of new equity" to more than $50M (SPORTSBUSINESS JOURNAL, 8/13 issue).