Another one falls!!!!!!!!!!!!
Sabres file for bankruptcy protection
Last Updated Mon, 13 Jan 2003 12:36:45
BUFFALO, N.Y. - The Buffalo Sabres hockey club has filed for bankruptcy protection.
The team is believed to have liabilities of about $238 million US, and assets of about $68 million US.
The National Hockey League confirmed the filing Monday morning.
FROM JAN. 9, 2002: Judge grants Ottawa Senators bankruptcy protection
The Sabres are the second NHL team to file for bankruptcy protection in the past week. Ottawa Senators filed on Thursday, owing creditors $160 million.
The Sabres filing was expected, and will give the team time to restructure and stabilize its financial situation, Buffalo Mayor Anthony Masiello said.
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Buffalo businessman Mark Hamister has been trying to buy the Sabres, but is waiting for financial backing from the state of New York.
The NHL is operating the team, a club without an owner. The NHL took over the team's operations after the financial downfall of owner John Rigas and his Adelphia Communications Corp., which is also currently under bankruptcy protection.
Adelphia is the team's largest creditor, and is owed $157 million US.
Bankruptcy protection allows a business to continue operating even if it is out of money. Once under court protection, lenders will advance failing companies more money, secure in the knowledge that they will go to the top of the creditors' list.
"This filing is another step toward the resolution of Buffalo's issues," NHL commissioner Gary Bettman said in a statement.
"It will enable the Sabres to secure financing that will allow them to continue to operate in the ordinary course, subject to league supervision, while the sale process is completed."
AI
