In the short term, sure. However, bankruptcy looks to the long term. If a reasonable plan of reorganization can be had that will lead to long term viability, it is incumbent on the court to give every chance for that to happen. If it can't, there are mechanisms within bankruptcy to kill it off and pay creditors as much as possible.
Does it always go like this? Where in 9 months no reasonable reorganization plan happens? LOL to the people who thought the bankruptcy stay would actually provide a faster/more imminent solution and breakup the stale-mate.... this has been the most drawn-out funeral for a network that was ready to die last year. Reminds me of keeping a dying pt on life support simply to argue about the will.
The only reason I can think of is that the Astros and Rockets know that whatever proposal they are working on is one that Comcast will not prefer. Maybe even arguing strongly against it. Maybe they think that if they make the proposal known at a somewhat early stage Comcast might convince the judge to not go down that road because it would not be beneficial to Comcast...but the Astros and Rockets believe that if they get the details all hammered out then the judge will be agreeable despite Comcast's protests just because it is the first real valid solution to this whole mess? That's the only thing I can think of.
My experience is primarily in Chapter 13 cases. From the Chapter 11 cases I have seen, this isn't exactly the norm but it isn't unheard of either. One factor in this is that it was an involuntary petition. It took a couple of months just to have all necessary hearings to decide whether a bankruptcy case would commence at all. So we were in a few months before we hit what normally happens on day one.
Does anyone still think NBC Sports group is still in the hunt for this? Why would they have let it bleed money so long if they didn't think they could keep it?
NBC is owned by Comcast. If Comcast cannot obtain carriage agreements that are profitable, I can't see how NBC can. If they can't, the judge won't approve the sale. Any deal would have to show a clear path to profitability. Also, the teams would have to be fairly compensated for their ownership interests and creditors would need to be paid.
It's not really bleeding money in a way - they are just not paying the Rockets and Astros, so they aren't paying out that $100MM+ / yr. Not really sure how that gets resolved whenever this is finally over with.
I would imagine that they will get in line with the rest of the creditors. The question will be their priority given that they are insiders.
Given how far in the hole they are, it seems hard to see any deal functionally making up all that lost revenue. It's one thing to come up with a deal that creates a viable network going forward. It's another to come up with a deal that makes enough to pay back the now $125MM or so owed to the two teams. I almost feel like if they try to save the network, the Astros and Rockets are going to have to voluntarily give up at least a portion of those funds (in exchange for value in some other way).
That is likely true Major. I suspect that creditors would be paid out of the purchase funds, with any residual funds going to the ownership. Whatever creditors are not paid (most likely the teams) would be subject to the discharge at the conclusion of the case.
<blockquote class="twitter-tweet" lang="en"><p>Crane: Judge won't allow third delay in CSN Houston bankruptcy reorganization <a href="http://t.co/63hkgESr3y">http://t.co/63hkgESr3y</a></p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/486534479314313216">July 8, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> [rQUOTEr]U.S. Bankruptcy Judge Marvin Isgur, who is presiding over the Comcast SportsNet Houston bankruptcy case, isn’t going to give the network a third strike when it comes to reorganization delays, Astros owner Jim Crane said this week. Isgur last week granted attorneys for the Astros-Rockets-Comcast partnership a second extension, through Aug. 7, to prepare a plan of reorganization for the financially troubled network. CSN Houston is available in no more than 40 percent of local wired households and has been unable to pay the Astros and Rockets tens of millions of dollars in rights fees since last fall. Crane, however, said a third extension apparently won’t be forthcoming when the parties return to court for a status update next month. “Hopefully when we go back there’ll be some activity because he’s (Isgur) not going to give us any more extensions,” Crane said. “We’re hopeful that we get a deal that works and we get the games on TV. I mean, it’s killing us. … Not a lot of the fans can watch the games. It’s been a priority the whole year and we’re very disappointed that we haven’t been able to get the games on.” Attorneys held a closed-door hearing before Isgur last week to discuss an offer submitted to the network. None of the parties has disclosed details of the offer.[/rQUOTEr]
<blockquote class="twitter-tweet" lang="en"><p>Judge Isgur has set 3 p.m. hearing in CSNH bankruptcy case involving negotiations by an unnamed party seeking to buy in to the network,</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/488717202627891200">July 14, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>This party is seeking confidentiality not only from public, but from some Comcast officials, regarding its talks with Astros and Rockets,</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/488717392491454465">July 14, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>Isgur is in Brownsville, so hearing will be conducted by phone. He says he has reservations about some aspects of Astros, Rockets request.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/488717629192810497">July 14, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" lang="en"><p>And the byzantine nature of this entire CSN Houston affair continues. Full update, to the degree I can interpret the matter, posted shortly.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/488718122824642563">July 14, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> [rQUOTEr]The Astros and Rockets say they are working with a prospective buyer or buyers for the parent company of Comcast SportsNet Houston and want more clearly defined confidentiality requirements in place, withholding details from the public and even from some Comcast/NBC Sports Group officials, as those talks continue, according to a court filing today. The teams say efforts to provide information requested by the prospective buyer or buyers of Houston Regional Sports Network, the Astros-Rockets-Comcast partnership that owns CSN Houston, “has been more complicated than had been expected,” and they want an order in place authorizing certain disclosures to be made. U.S. Bankruptcy Judge Marvin Isgur has scheduled a 3 p.m. telephone hearing from Brownsville, where he is hearing cases today, to discuss the matter. As a condition of negotiations, the teams say, the prospective purchaser or purchaser for CSN Houston has required that its identity and its terms not be disclosed to the network’s board of directors until the purchaser or purchasers agree to do so or until July 31, which Isgur has set as the deadline for disclosure. The CSN Houston board consists of Astros general counsel Giles Kibbe, Rockets CEO Tad Brown, NBC Sports Group president Jon Litner and NBC Sports Group executive vice president/finance John Ruth. Since Kibbe and Brown, as executives of the teams, presumably are aware of the bidder’s identity, the motion apparently is intended to keep information specifically from Litner and Ruth until July 31 or until the purchaser gives the go-ahead. The nature of the Astros’ request gave rise to immediate speculation that the bidder or bidders might include AT&T Home Solutions, which owns the U-verse video system, or DirecTV, which is in the process of being acquired by AT&T. Isgur approved the Astros’ and Rockets’ request for a hearing but said he is concerned about the nature of their request. “The court expresses substantial skepticism that any information could be properly withheld from a board member,” he wrote. “… The thrust of the motion would appear to disenfranchise the Comcast board member from meeting his fiduciary duties. The parties should consider an appropriate alternative prior to the hearing.” http://blog.chron.com/sportsupdate/...aid-talks-with-prospective-csn-houston-buyer/[/rQUOTEr]
Prepare for additional lawsuits from Comcast against the Astros/Rockets on whether or not its right to withhold potential information from them... and nothing gets resolved till that lawsuit gets heard, which will take another 9 months! :grin: Obviously, I'm joking... but with this whole cluster-****, who knows what will ultimately happen. All I do know is that had the Astros been allowed to terminate the deal 9 months ago... all parties would likely have been on TV by now.
<blockquote class="twitter-tweet" lang="en"><p>This just in: Comcast finds Astros/Rockets hearing request today in CSNH case to be "highly troubling." Details coming in a few.</p>— David Barron (@dfbarron) <a href="https://twitter.com/dfbarron/statuses/488735653320855552">July 14, 2014</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
Obviously Comcast would not want to sell to AT&T or DirecTV which are probably their biggest competitors in the area. And maybe this request for confidentiality will allow negotiations to progress further than they would with Comcast having a seat at the table. Idk... But what a mess.
[rQUOTEr]In a response filed at midday today, Comcast it finds the request by the Astros and Rockets to be “highly troubling” and asked that the court reject it. “Rather than engaging constructively with Comcast to address their legitimate concerns, (the motion) is another effort by the teams to create an ‘emergency’ where none exists so as to deprive Comcast of any reasonable opportunity to protect its legitimate interests,” company attorneys said. Comcast attorneys said the company was aware, when its affiliates filed the September 2013 petition that resulted in CSN Houston entering bankruptcy petition, that the company eventually could be sold to a competing bidder. “But Comcast is entitled to have its substantive and procedural rights respected,” attorneys said. “This so-called emergency motion is an effort to abridge these rights. Comcast accordingly objects. The emergency motion should be denied. They added, “Judicial relief should be available to the extent any party (including Comcast) fails to engage in the process in good faith or to the extent any disputes cannot otherwise be resolved. It should not be available before the teams stop trying.” Attorneys said Comcast already has agreed to certain confidentiality issues but is concerned that the teams will not provide adequate protection for confidential information it proposes to provide to the prospective buyer. http://blog.chron.com/sportsupdate/...aid-talks-with-prospective-csn-houston-buyer/[/rQUOTEr]
Well "obviously"... but then their own parent company doesn't want to buy out the Astros/Rockets either... so what do they want? To keep losing money and refusing to pay the teams? Yeah, that sounds like a plan!
So the teams have a sense of urgency because their games can't be seen... and Comcast wants things to move even slower than they have. Hmm....
