Greg Cross, Chair of Venable’s Bankruptcy and Creditors’ Rights Practice, was quoted in a Bloomberg story about the possibility that the Chicago Cubs’ may soon become the first major league baseball team in almost 40 years to declare bankruptcy. Cross’ comments were also included in coverage by Crain’s Chicago Business and BizofBaseball.com.
The Tribune Company, which owns the team, sought Chapter 11 protection in December and is contemplating a separate filing for the Cubs to expedite an estimated $900 million sale of the team to interested bidders. According to the Bloomberg story, sources said it remained possible the sale would close without the team filing as well.
A brief bankruptcy would be a legal maneuver to clear the team from any future liability in the Tribune bankruptcy. Sam Zell, CEO of Chicago-based Tribune, pledged the company’s interest in the Cubs as collateral when he negotiated the deal to take the publisher private in 2007.
The bankruptcy could be accompanied by a motion to sell the team with an agreed-upon bidder, and the entire process could take as little as 20 days, said Cross.