Dodgers Expected to Emerge From Bankruptcy On April 30
The Dodgers are less than one month away from being back in the black, the team announced on Friday.
Guggenheim Baseball L.P., the group of buyers including Magic Johnson that purchased the team for $2.15 billion, filed paperwork on Friday to make the sale official. Among the documents filed were an Amended Plan of Reorganization, a Plan Supplement to the Amended Plan of Reorganization, a Proposed Confirmation Order, and a Memorandum in Support of Confirmation of the Amended Plan.
The 70-page agreement revealed few details regarding the group's financing or what involvement former owner Frank McCourt would have with the franchise. It did, however, show that Guggenheim Baseball is paying nearly $1.6 billion in cash and assuming approximately $400 million in debt as part of the deal.
The sale is scheduled to close on April 30, which happens to be the same day that McCourt is required to pay his ex-wife a $131 million settlement as the former couple's nasty divorce draws to a close. Should the sale stay on track, Guggenheim will take over the team on May 1 and the Dodgers will have crawled out of bankruptcy in just 10 months.
“The amended Plan of Reorganization, among other things, provides for the payment of all allowed claims of creditors in full, includes a substantial distribution for debtors’ equity interest holder, and provides a solid foundation for the long term success of Los Angeles Dodgers and its affiliates," the team said in a statement.
The Dodgers were officially put up for sale in January with McCourt and Guggenheim closing a deal on March 27. The team is set to take on the Pittsburgh Pirates during a three-game series at Dodgers Stadium on April 10, 11 and 12.
Guggenheim is also an owner of Prometheus Global Media, parent company of The Hollywood Reporter.