After several years in flux, a Houston sports cable network is getting new owners. The National Basketball League’s Houston Rockets and Major League Baseball’s Houston Astros are paying $26.2 million for assets of Comcast Corporation, to become majority shareholders in formerly floundering local Houston-area sports network, which is now emerging out of bankruptcy.
Pursuant to a Chapter 11 bankruptcy restructuring plan, a bankruptcy court is allowing AT&T and DirecTV, backed by the teams, to revive the former Houston Regional Sports Network as a new channel, now known as Root Sports Southwest. The Astros and the Rockets are purchasing Comcast’s interests. Of the $26.2 million, a large portion of that money will go toward paying off Comcast, who lent collateral to keep the network afloat.
As part of the deal, Comcast has agreed to drop lawsuits in the U.S. District Court for the Southern District of Texas, which would have prevented the court from implementing the bankruptcy plan, over the company’s $100 million loan. Back in October, according to the Wall Street Journal, U.S. Bankruptcy Court for the Southern District of Texas Judge Marvin Isgur ruled that the $100 million Comcast loan was of “inconsequential value.” At the time, Comcast made public statements that suggested it would attempt to block the bankruptcy plan, in an effort to recover more of the $100 million it had invested.
If you have questions about resolving litigation, or entering into settlement negotiations, like the decision Comcast recently made, or just want to discuss your options for handling potential litigation against competitors, you need an experienced Georgia business lawyer. Attorney James J. (“Jim”) Thomas II has more than 35 years of courtroom experience in the Atlanta area, and has represented professional athletes, teams, and leagues, as well as many other individuals and businesses. Jim is a business litigation expert who can handle complex business litigation as well as analysis, evaluation, and resolution of existing and potential litigation including sports litigation. Give Jim a call at 404-869-5248 or visit www.litigationatlanta.com online.