Aug 16, 2012, 1:49 PM EDT
According to the New York Post, Devils owner Jeff Vanderbeek is on the verge of reaching a deal with lenders that would allow him to retain control of the club for at least two more years.
The proposed deal would buy Vanderbeek — who has been trying to scrounge up cash to pay off overdue loans — another two years to either refinance the team’s debt or sell the club, sources said.
The deal calls for combining the team’s debt with separate loans against Devils Arena Entertainment, which collects concession revenue from Prudential Center events, into a single $160 million loan.
The former Lehman executive dug into his own pocket to inject fresh cash into the team and raised enough from new investors to pay off a few lenders who do not want to participate in the proposed restructuring, sources said.
The Post reports the deal could still collapse, which could force the Devils into bankruptcy.
However, The Record explains why bankruptcy is unlikely for now:
A source said Vanderbeek has already worked the debt down to less than $35 million and raised roughly half of that remaining figure, leaving him needing about $18 million more to fully cover what the team owes the banks. If the lenders were to push the team into bankruptcy, they would likely recover much less than that. That gives them every reason to give Vanderbeek the time he needs to raise the rest of the money the team owes.
Obviously the lenders will be watching the CBA negotiations closely. According to Forbes, New Jersey is a money-losing franchise, so a lockout shouldn’t hurt the bottom line too badly. In fact, it may help it. And if the owners can score a better deal from the players, Vanderbeek’s prospects of repaying the debt will improve.
- Playoffs Tonight: Penguins aim to finish off Senators 14
- Kings’ Quick ‘didn’t have to work hard’ in shutout win over Sharks 7
- Discuss: Kings dominate Game 5, one win away from Western Conference final 21
- Discuss: Red Wings take 3-1 series lead 62
- Discuss: Rangers stay alive with OT win 85
- What they’re saying about the Avs hiring Patrick Roy 9
- It’s official: Colorado names Roy sixth head coach in franchise history 52
- Couture accuses Kings captain Brown of diving 38
- Three reasons why the Rangers might buy out Richards 26
- Richards made a healthy scratch for Game 4 35
- Report: NHLPA director Fehr wants to address issue of fighting (113)
- Question for commenters: What, if anything, needs to be done about the officiating? (101)
- Discuss: Bruins rally in third, take 3-0 series lead (99)
- Discuss: Detroit takes 2-1 series lead vs. Chicago (95)
- Video: Crosby scores hat trick, hits playoff milestone against Senators (91)
- Live Extra: Watch coverage of Carb Day at Indy
- PHT: Senators fight for playoff lives in Game 5
- Struggling Blackhawks on brink of elimination
- PHT: Wings push Blackhawks to brink | Highlights
- PHT: Kreider keeps Rangers alive | Highlights
- PHT: Kings defend home ice, up 3-2 | Highlights
- PBT: Hibbert says Battier's knee to groin intentional