Bankrupty Judge Forces Frank McCourt to Take MLB Loan

Reuters ^ | July 22, 2011 | Lucas Shaw

[La Enchiladita]

Los Angeles Dodgers’ owner Frank McCourt will be forced to accept a loan from Major League Baseball after a bankruptcy judge rejected a potential loan from a hedge fund on Friday.

McCourt had been seeking to get an outside loan that would enable him to pay off creditors without involving the league, which has made its displeasure with McCourt quite clear.

Instead, the judge rejected the loan McCourt wanted and pushed him in the direction of MLB. Bruce Bennett, McCourt’s lawyer, issued a statement suggesting that MLB did not have the right to intervene in matters of ownership.

[La Enchiladita]

Slowly but surely, we'll get rid of this loser Frank the Knife as I call him, and rebuild our beloved Dodgers. He sure ain't making it easy.

[scrabblehack]

Is MLB expecting him to default (and seize the franchise?)

[La Enchiladita]

(Quote)

While Gross did not approve the deal McCourt proposed, he ordered one that will cost the Dodgers less money without appearing to enable a seizure of the club. The Order specifically forbids the financing from including “default triggers for violations of Baseball’s rules and regulations.” McCourt and the Dodgers will still be required to follow baseball’s policies, but failure to do so will not seemingly allow commissioner Bud Selig to take over club operations.

(End quote)

Full article here: http://sports.espn.go.com/los-angeles/mlb/news/story?id=6794188