The Devils, who "missed a $100 million principal loan payment Sept. 1, have taken a small step toward a financial recovery after principal owner Jeff Vanderbeek reached an agreement to purchase co-owner Ray Chambers’ 47-percent stake in the franchise," according to a source cited by Josh Kosman of the N.Y. POST. The deal for Chambers’ stake, which had been on the market for more than eight months, "helps steady the Devils’ ownership situation -- but the heavily-indebted NHL team must still work to restructure" its debt. A source said that the team's lenders "have not yet agreed to refinance the Devils’ loans which are in default." The team "did not deny it had missed its loan payment but said it was confident 'a refinancing will be completed shortly'" (N.Y. POST, 9/13). In Newark, Rich Chere cites sources as saying that the "deadline for the loan payment had been pushed back almost two months." Sources added that the sale of Chambers' stake "likely only reached advanced stages" when his Brick City LLC "agreed to lower its asking price of $200 million by 20 percent" (NJ.com, 9/12).
TAKE IT TO THE BANK: In N.Y., Kristie Ackert notes the Devils "denied a story published Monday that claimed the team was on the brink of filling for bankruptcy." The team in a statement said, "The NY Post story is inaccurate. The notions that the Devils are facing bankruptcy or that the Devils have told their banks to 'get lost' are patently untrue. The Devils value their relationship with their banks and are confident a refinancing will be completed shortly. As stated previously, ownership is close to finalizing an agreement that would lead to a buyout of (minority owner) Brick City's share of the company." Ackert notes while the Devils "disputed the report of their impending bankruptcy, the team cannot deny that it has struggled with attendance." The team last season averaged 14,775 fans a game at Prudential Center, finishing 25th in the 30-team NHL in attendance (N.Y. DAILY NEWS, 9/13). The Devils in their press release refuting the bankruptcy report also boasted about "increased ticket sales." The statement said, "The organization is also pleased to report that new season ticket sales are up 130 percent over last year and last week's on-sale for single game tickets were 260 percent above last year's similar period" (ESPNNY.com, 9/12). Devils President, CEO & GM Lou Lamoriello declined to comment on the team's financial situation, "except to insist his moves this summer have not been hampered by such constraints" (N.Y. POST, 9/13).
