Major League Baseball objected to the Los Angeles Dodgers proposed bankruptcy-exit plan, saying it contradicts a settlement the team reached with baseball officials last year.
The objection is “limited” and doesn’t mean Baseball Commissioner Bud Selig is reneging on his promise to help the Dodgers win court approval for its reorganization plan, which is required before the team can exit bankruptcy, MLB officials said in the objection, filed today in federal court in Wilmington, Delaware.
The reorganization plan contains minor flaws that should be corrected, including a provision that appears to “release numerous persons (including Dodgers’ players, coaches and personnel, etc.) from violations of MLB rules and regulations,” MLB said in court papers.
Such broad legal releases also violate court precedent, MLB said.
Owner Frank McCourt agreed to sell the Dodgers after months of legal battles with Major League Baseball and News Corp. (NWSA)’s Fox Sports. That sale would be approved by U.S. Bankruptcy Judge Kevin Gross as part of the reorganization plan.
The team said in a court filing last year it may sell for more than $1 billion. The sale is required to be completed by the end of April.
Dodgers spokesman Robert Siegfried didn’t immediately respond to an e-mail requesting comment on the objection.
The case is In re Los Angeles Dodgers LLC, 11-12010, U.S. Bankruptcy Court, District of Delaware (Wilmington).
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