Sabres receive $10M line of credit
January 14, 2003 Print it
BUFFALO, N.Y. -- A day after the Buffalo Sabres filed for bankruptcy, a judge approved a $10 million line of credit on Tuesday that the team can use for operating expenses.
Judge Michael J. Kaplan approved the credit, which acts as a revolving line, meaning the Sabres will have revenue coming in and money to expend, said Dan Brown, an attorney for Erie County.
The Sabres filed for bankruptcy protection Monday, becoming the second team in a week to seek relief from creditors. The Ottawa Senators did the same last week.
In court papers, the Sabres list more than 1,000 creditors. The fourth biggest creditor, the Vancouver Canucks, said Tuesday the Sabres do not owe them the $442,199 listed for an unspecified contract.
After looking into the situation Monday, Canucks president and general manager Brian Burke said it likely related to a back payment Buffalo owed Alexander Mogilny after a 1995 trade sent him to Vancouver for Michael Peca, Mike Wilson and a first-round draft pick in 1995 (Jay McKee).
"I've reviewed the trade memo and it's clear to me that it's not money owed to us and so all I can say, all I conclude, is it's a mistake," Burke said. "We do not owe Alexander Mogilny money, we do not owe the Buffalo Sabres money and we expect the league to rectify this."
AI
