Here's the Dallas Stars release on the proposed sale to Vancouver businessman Tom Gaglardi and today's bankruptcy filing in Delaware.
The current owner of the Dallas Stars National Hockey League Club, Dallas Stars, L.P., announced today that it and certain of its affiliates have signed an agreement to sell the Stars and all hockey-related assets to entities owned by Vancouver businessman Tom Gaglardi and his family, subject to a court approved auction and NHL approval.
To facilitate the sale, Dallas Stars, L.P. has commenced a voluntary chapter 11 bankruptcy case in the United States Bankruptcy Court for the District of Delaware in Wilmington, including the filing of a “prepackaged” chapter 11 plan. The chapter 11 process has the support of the National Hockey League and the Dallas Stars’ lenders, who voted to accept the prepackaged plan prior to filing. The prepackaged plan provides for a court-supervised auction of the Dallas Stars Club and other hockey-related assets. The purpose of the sale is to allow for a smooth transition in ownership, while ensuring that the Dallas Stars continue to play at the American Airlines Center in Dallas. The Plan provides that the Dallas Stars will pay and perform all of its obligations to its fans, players, employees, and vendors.
The Dallas Stars Club is unequivocally committed to remaining in Dallas and playing its home games at the American Airlines Center. To that end, no bid submitted will be considered that contemplates moving the team from the American Airlines Center in Dallas.
The auction process and sale are subject to Bankruptcy Court and National Hockey League Board of Governors approvals.
The prepackaged plan is the result of negotiations involving input from the National Hockey League and certain of the Club’s senior secured lenders. Because the plan has already garnered substantial support from the Club’s lenders, the Club expects to move through the legal process expeditiously and has requested that the Court hold a hearing in 60-75 days to confirm the plan and proposed sale, allowing the Stars to exit bankruptcy and complete the sale of the franchise by the end of November.
“This is a significant step toward completing the transition in ownership,” said Stars President Tony Tavares. “We are pleased that our lenders have shown substantial support for the plan and the sale process, but the Dallas Stars are focused on one thing: hockey. The players and coaches begin Training Camp on Friday and we are all excited to start the new season.”
The Dallas Stars believe that the legal process will not have an impact on Dallas Stars hockey or its business operations—it is business as usual for the Dallas Stars. The Club has obtained permission from its lenders to use its available cash on hand to fund operations while in chapter 11, and believes this amount is sufficient for such purposes until the sale is finalized.
The Club filed customary motions seeking to ensure that:
The Stars will be able to operate within their existing budget to sign and acquire amateur, international and professional players;
Purchased tickets will continue to be honored;
The fan experience at the American Airlines Center will be unchanged, with all current amenities and promotions continuing as usual;
All salaries will be timely paid; and
Stars vendors and suppliers will be fully paid in the ordinary course of business.
The Dallas Stars expect to present all of the customary motions for approval by the Bankruptcy Court at a hearing to be held in Wilmington Monday.