According to ESPN.com, the Rangers will have to change their bankruptcy plan to avoid having it killed by upset creditors.
In a ruling issued Tuesday, U.S. Bankruptcy Judge D. Michael Lynn in Fort Worth said creditors and team owners were adversely affected by the Rangers’ plan. That plan calls for paying creditors $75 million and selling the team to a group led by Hall of Fame pitcher and team president Nolan Ryan and Pittsburgh attorney Chuck Greenberg.
The judge didn’t take issue with the $75 million figure but with some creditors’ rights being removed.
The ruling allows the team and two groups of creditors to vote on the plan. Because creditors have said they would vote against it, the Rangers are expected to change the plan before any vote happens.
Rumors have it that the Rangers are interested in acquiring a pitcher (they’ve already been linked to Roy Oswalt) at the trade deadline this year. But in their current financial state, I don’t know how they’ll be able to pull that off unless Major League Baseball pays at least part of the player’s salary.
It would unfair to the current players if the Rangers couldn’t acquire a much-needed arm in order to get them to the postseason because of their financial mess, but those are the breaks.