The Rangers sale did not come much closer to conclusion today, as Judge Michael Lynn ruled that the creditors are impaired and the sale must be amended to satisfy them before a deal can be done. Following that link will take you to Lynn's full 28-page report.â†µ
A bankruptcy attorney and friend of the website summarized the report this way for us lay men:â†µ
If the creditors are happy, it's because Lynn didn't just completely pour them out. He is not going to confirm the plan as it now stands, but all Hicks has to do is amend the plan to pay the creditors interest on their 75MM.â†µ
Once the new plan goes on file, the two Rangers equity companies have to re-vote to approve it. In order to scuttle the deal now, the creditors have to figure out a way to take control of the Rangers equity companies so they can cast the vote the way they want. The involuntary bankruptcy cases that the creditors filed against the Rangers equity companies may eventually get the creditors some control, but not soon enough I'll bet. Later, I think Kaplan et al will realize the creditors (Monarch) just won the battle and lost the war.â†µ
There's also some lengthy discussion of the news at Lone Star Ball, including some good summaries from helpful folks like ab03.â†µ
I don't pretend to understand this very well, but from what I can glean from the summaries, this is not the great news we were hoping for but it's also not yet time to panic.â†µ
UPDATE: Maury Brown chimes in.