Hedge Fund Texas Rangers

Hedge Fund Texas Rangers

Hedge Fund Blocking Sale of Texas Rangers Baseball Team

A hedge fund manager has made headlines as the last obstacle for a retired private equity manager to sell a major league baseball team in order to settle over $500 million in defaulted debt.  Tom Hicks, of  Hicks Holdings, is attempting to sell the Texas Rangers to a group including pitching legend Nolan Ryan, but Monarch Alternative Capital which holds about a fifth of Hicks' debt is obstructing the sale.  Monarch, a NY-based hedge fund specializing in distressed debt, is thought to be waiting for a better offer.

Last week, Hicks’ sports team holding company, Hicks Sports Group, announced its plan to sell the Texas Rangers for an unspecified amount, believed to be more than $500 million. But Monarch Alternative Capital, which holds $100 million of Hicks’ $525 million in defaulted debt, is reportedly unhappy with the deal to sell to a group led by Pittsburgh lawyer Chuck Greenberg and Nolan Ryan, the legendary Hall of Fame pitcher who serves as president of the Rangers.

HSG’s creditors, including Monarch, must approve the sale.
It is believed that the Greenberg-Ryan offer was not the richest received by HSG: Houston businessman Jim Crane’s bid was reportedly higher than the one that was accepted.
Monarch, a New York-based distressed-debt hedge fund, may think that the Greenberg-Ryan group isn’t offering enough, SportsBusiness Journal reports.  Source

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