147 replies to this topic

[msweet]

The New Jersey Devils training camp doesn’t open until tomorrow but already the three-time NHL champs are skating on thin ice, The Post has learned.

The attendance-challenged, heavily indebted team missed its Sept. 1 loan payment, giving its lenders a breakaway chance to push the team into bankruptcy, a source with direct knowledge of the situation said.

“The Devils are blowing up,” the source said.

The team’s financial hardships could also affect Newark’s four-year-old Prudential Center, the Devils’ home arena. Team-owned Devils Arena Entertainment operates the $375 million

building and guarantees the Devils’ loans and, therefore, is in danger of also going bankrupt. Two issues are complicating matters. First, principal owner Jeff Vanderbeek and co-owner Ray Chambers, each of whom owns 47 percent of the franchise, are on the outs. Chambers, through his Brick City Hockey unit, has been trying to sell his non-controlling stake in the franchise for a year.

Read more: http://www.nypost.co...H#ixzz1XkyWwsqc

[overtime98]

hahaha. vanderbeek has taken a bath on the devils. he doesn't want to sell, his investors do.

Dont be fooled, He wants to sell too. He is working for his investors.

[Devils731]

Dont be fooled, He wants to sell too. He is working for his investors.

Isn't he his own most important investor in this case? He is tied for largest partner and has control of operations.

TG says VBK may be close to buying out Gillifigan's portion. Do you expect VBK to then try and flip the whole team?

[halfsharkalligatorhalfman]

Oh boy...

NY Post or not, this is serious. I now have a reason to root against an NBA lockout.

[MadDog2020]

Not in any way shape or form. Prudential Center is brand new, even if ownership changed there is ZERO chance the team would move. Atlanta's situation was so much different...ownership wanted to sell and the only buyers were people intending to move them. The arena didn't want them, the city didn't want them, they were constantly missing the playoffs and last in attendance...just totally different.

Exactly. Some people on here aren't happy unless they're worrying or complaining about something. Its annoying as fvck.

[justdo3043]

The Devils' past-due loan payment of roughly $100 million is owed to a CIT-led lending group. Devils Arena Entertainment owes $180 million, the source said.

funny because they were bankrupt not to long ago themselves

My link

[Colin226]

If lenders push them into bankruptcy, wouldn't that relieve the team of their debt? If that's the case, I don't see the lenders doing that.. They want the money.. I just refuse to be bothered by team finances until someone from the team actually comes out and makes an indication that there's an issue.. Not worth the stress

Edited by Colin226, 12 September 2011 - 11:59 AM.

[DaneykoIsGod]

Thread merge?

http://www.njdevs.co...howtopic=109899

[Marv4Life]

Isn't there a thread on this?

[justdo3043]

If lenders push them into bankruptcy, wouldn't that relieve the team of their debt? If that's the case, I don't see the lenders doing that.. They want the money.. I just refuse to be bothered by team finances until someone from the team actually comes out and makes an indication that there's an issue.. Not worth the stress

the lenders would take control of the team....think dallas....signing parise would probably be a non-starter

lots of specualtion...i wouldn't think CIT would want the assets because they would have to sell it cheap and would probably be the ones taking a bath

i don't like to think about this either...going to stick my head in the sand now

[devilsfan26]

Isn't there a thread on this?

Yea we needed a separate one that is pinned though...

[DevilMinder]

Pinned, and renamed since there was three threads with different titles running now.

[Colin226]

hahaha. vanderbeek has taken a bath on the devils. he doesn't want to sell, his investors do.

Completely correct.. VBK doesn't want to sell.. That's how I knew the article was practically worthless..

[The Facepainter]

Question for you guys. Normally if you default on a loan for a car, you are still responsible for the car, but you cannot sell the car until the loan is payed off. I was just wondering if this would hold up the sale of Vanderbeek's co-owner's share of the team?

Edited by The Facepainter, 12 September 2011 - 12:13 PM.

[NewarkDevil5]

If lenders push them into bankruptcy, wouldn't that relieve the team of their debt? If that's the case, I don't see the lenders doing that.. They want the money.. I just refuse to be bothered by team finances until someone from the team actually comes out and makes an indication that there's an issue.. Not worth the stress

There is one big question to ask when a company that goes into bankruptcy owes you money: are you a secured creditor or an unsecured creditor. If you're an unsecured creditor you're liable to be lucky to get pennies on the dollar when all is said and done. If you're secured, then you're going to be getting your money or whatever asset you're secured by somehow or other. To me, for a loan of $100 Million, the only kind of security that CIT could have would be to have a lien on all of the business assets of the Devils which would mean putting the business up for sale.

For the record, I'm sure there are still many more options on the table than bankruptcy, but going into a bankruptcy owing $100 Million to a bank when your total value is only double that and you have no tangible assets to sell off to make that money is a risky thing unless you've got a partner on the outside willing to come in and refinance the loan somehow.

[devlman]

This is a whole lot of nothing just because VBK is having difficulty finding investors. Its not the end of the world. It wont affect Parise, wont affect the price of your cotton candy, wont make the Pru implode in ontself.

[Devils1985]

My thoughts are two seemingly contradictory statements:

1. Where there’s smoke, there’s fire
2. Only believe about have of what you read and don’t be so sure about the other half. Especially how we see that “reporting” is simply copy/paste in some cases….

These kinds of stories have been popping up here and there, and we also have the whole minor league ‘reorganization’ thing. Just something to keep an eye on; no reason to panic.

[NewarkDevil5]

I don't think there's any reason to panic based off this report, but the team's PR Staff needs to be on its toes and have ready answers or at the very least ready distractions to keep people's minds off these kind of stories otherwise they stick in people's heads.

[Marv4Life]

Didn't CIT file for bankruptcy? Irony...

[Colin226]

Devils calling the report "patently untrue".. And I agree with them, although I know most people will go "Of course their saying that!!".. Ok well they know their finances better than anyone, and it was an article from The Post, so I'll choose to believe my team over an article written by a paper that took us off the main page of their site and a paper that loves to write these kinds of articles about the Devils.. Maybe if the Ledger or the Record thought that this deserved a mention, then maybe I'd care

Edited by Colin226, 12 September 2011 - 01:10 PM.