Judge approves Dodgers' reorganization plan

WILMINGTON, Del. (AP) -- A bankruptcy court judge in Delaware gave his approval Friday to the Los Angeles Dodgers' plan to sell the team for $2 billion.

U.S. Bankruptcy Judge Kevin Gross' approval of the Dodgers' reorganization plan came at the conclusion of a two-part morning and evening hearing he called a "doubleheader." The decision allows the team to exit bankruptcy.

The reorganization plan is based on Dodgers owner Frank McCourt's agreement to sell the team for $2 billion to Guggenheim Baseball Management, a group that includes former Los Angeles Lakers star Magic Johnson. Mark Walter, chief executive officer of the financial services firm Guggenheim Partners, will become the controlling owner, and the team will be run by former Atlanta Braves president Stan Kasten.

Both Kasten and McCourt were in court Friday. The sale is set to close by April 30, the day McCourt is to make a $131 million payment to former wife Jamie as part of their divorce.

"All the organization's goals in the reorganization cases have been achieved. We look forward to returning all of our attention to Dodger baseball," the team said in a statement following the hearing.

The Dodgers entered bankruptcy in June 2011 during a bitter dispute with Major League Baseball. At the time, baseball Commissioner Bud Selig refused to approve a new TV deal with Fox Sports that the team was counting on in order to make payroll and keep the franchise solvent.

Friday's hearing helped resolve a number of lingering issues ahead of the team's sale. Fox, the team's current broadcaster, had wanted written assurance that competitor Time Warner Cable was not contributing funds being used for the purchase. Lawyers for the Dodgers agreed to do that.

Friday's hearing dragged into the evening, however, as lawyers for the Dodgers and Major League Baseball sparred over the information being given to the league about the plan. A lawyer for Major League Baseball said the league has issues with the plan and was owed more information. A Dodgers lawyer said the team has met all the criteria to have the plan confirmed, and the judge agreed.

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Dodgers' planned sale before judge

WILMINGTON, Del. (AP) -- A federal bankruptcy court judge in Delaware is holding a hearing Friday on whether to approve a reorganization plan by the Los Angeles Dodgers that would put the team on track to exit bankruptcy.

The team said this week that it expects U.S. Bankruptcy Judge Kevin Gross to approve Frank McCourt's plan to sell the team for $2 billion to Guggenheim Baseball Management.

Friday's hearing dragged into the evening, however, as lawyers for the Dodgers and Major League Baseball sparred over the information being given to the league about the plan. A lawyer for Major League Baseball said the league has issues with the plan and is owed more information. A Dodgers lawyer said the team has met all the criteria to have the plan confirmed.

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Judge approves of Dodgers' sale

WILMINGTON, Del. (AP) -- A bankruptcy court judge in Delaware agreed Friday to the Los Angeles Dodgers' plan to sell the team for $2 billion, setting the team up to exit bankruptcy.

The decision by U.S. Bankruptcy Judge Kevin Gross came at the conclusion of a two-part morning and evening hearing he called a "doubleheader."

The judge approved Dodgers owner Frank McCourt's plan to sell the team to Guggenheim Baseball Management, a group that includes former Los Angeles Lakers star Magic Johnson. Mark Walter, chief executive officer of the financial services firm Guggenheim Partners, would become the controlling owner, and the team would be run by former Atlanta Braves president Stan Kasten.

Both Kasten and McCourt were in court Friday. The sale is set to close by April 30, the day McCourt is to make a $131 million payment to former wife Jamie as part of their divorce.

The Dodgers entered bankruptcy in June 2011 during a bitter dispute with Major League Baseball. At the time, baseball Commissioner Bud Selig refused to approve a new TV deal with Fox Sports that the team was counting on in order to make payroll and keep the franchise solvent.

After the bankruptcy filing, Selig's attorneys successfully fought to force the Dodgers to accept bankruptcy financing from Major League Baseball. The team and league reached an agreement last year authorizing the team's sale and a process to market the media rights to games starting in 2014.

Friday's hearing helped resolve a number of lingering issues ahead of the team's sale. Fox, the team's current broadcaster, had wanted written assurance that competitor Time Warner Cable was not contributing funds being used for the purchase. Lawyers for the Dodgers agreed to do that.

Friday's hearing dragged into the evening, however, as lawyers for the Dodgers and Major League Baseball sparred over the information being given to the league about the plan. A lawyer for Major League Baseball said the league has issues with the plan and is owed more information. A Dodgers lawyer said the team has met all the criteria to have the plan confirmed, and the judge agreed.

The judge called the prospective new owners an "outstanding group."

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Dodgers say bankruptcy case is on track

DOVER, Del. (AP) -- The Los Angeles Dodgers filed a revised reorganization plan on Friday and said they are on track to exit bankruptcy as planned by April 30.

The amended Chapter 11 plan filed Friday in U.S. Bankruptcy Court in Delaware is based on an agreement announced last week to sell the team for more than $2 billion, which the Dodgers say will allow for the payment of all allowed creditor claims in full.

The Dodgers are being bought by Guggenheim Baseball Management, a group that includes former Los Angeles Lakers star Magic Johnson and longtime baseball executive Stan Kasten.

The $2 billion purchase price includes about $412 million of existing debt financing that will remain in place. The balance, just under $1.6 billion, will be paid in cash from equity financing by the owners and affiliates of Guggenheim, which has provided a cash deposit of about $159 million.

"This agreement is the culmination of an auction process that was conducted over several months and reflects the highest and best bid generated by that process," the team said in a prepared statement.

The April 30 date was included in a settlement that resolved a dispute between the Dodgers and Major League Baseball over the team's bankruptcy. It coincides with the deadline for current owner Frank McCourt to pay $131 million to his ex-wife, Jamie, as part of their divorce settlement.

The judge presiding over the bankruptcy case has scheduled a hearing next Friday to consider whether to confirm the plan.

While the purchase agreement with Guggenheim calls for the sale to close on April 30, it also allows the Dodgers to seek approval from MLB or the court to extend the closing date to sometime next month if need be.

Court papers indicate that Dodgers chief financial officer Peter Wilhelm will remain in that post with the reorganized company. Kasten, former president of the Atlanta Braves and Washington Nationals, will serve as president and CEO.

"By any measure, the plan is a remarkable outcome for the debtors, their estates, and all parties in interest, especially taking into account where these cases began," Dodgers attorneys wrote in a memorandum supporting the revised plan.

The Dodgers sought bankruptcy protection in June after baseball Commissioner Bud Selig refused to approve a new TV deal with Fox Sports that McCourt was counting on in order to make payroll and keep the franchise solvent.

After the bankruptcy filing, attorneys for Selig successfully fought to force the Dodgers to accept bankruptcy financing from Major League Baseball, arguing at the same time that McCourt had looted more than $180 million from the team for his own use and reasons not related to baseball, and that he should be forced to sell the team.

The Dodgers, meanwhile, threatened to seek court permission to enter into a new media rights deal without the approval of MLB.

After battling for several months, the Dodgers and MLB reached an agreement last year that authorized a sale of both the team and a process to market the media rights to games starting in 2014.

Fox Sports objected to the settlement with MLB and the proposed marketing of future media rights, saying it violated Fox's rights under its existing telecast contract with the Dodgers.

The Dodgers reached a settlement with Fox in January after a federal district court judge said Fox likely would win an appeal of the bankruptcy judge's ruling authorizing the marketing of the media rights.

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