Alex Rodriguez Named to Rangers Creditors Committee
Alex Rodriguez, the New York Yankees third baseman, was named to the committee representing Texas Rangers unsecured creditors in the team’s bankruptcy case.
Rodriguez, a former Rangers shortstop, has the largest unsecured claim against his old team. He is owed $24.9 million in deferred compensation, according to court documents.
The U.S. Trustee, an arm of the Justice Department that monitors bankruptcy cases, said yesterday in a court filing that it selected Rodriguez, 34, to serve on the committee.
The ballplayer will be one of three people representing the interests of all unsecured creditors in U.S. Bankruptcy Court in Fort Worth, Texas, where the team entered bankruptcy May 24. Committees typically hire their own legal and financial advisers, paid by the company in bankruptcy, to guide them through the case.
The Rangers said in court papers that all its creditors will be paid in full. The Trustee’s office said “it is not all certain” that is the case.
Rodriguez’s lawyer, Joseph Wielebinski, declined to comment about Rodriguez’s views on the case.
The committee met for the first time yesterday. Jeffrey R. Fine, a lawyer for the panel, declined to comment about its deliberations. The committee is “in the very early stages” of getting organized and learning about the Rangers’ bankruptcy, the attorney said today in an interview.
Secured lenders, including Monarch Alternative Capital, oppose the proposed sale of the team to a group led by Chuck Greenberg and team President Nolan Ryan, who once pitched for the Rangers. The lenders say the team could get a better deal.
Fine said the unsecured creditors’ committee hasn’t taken a position on the planned sale or whether the team should conduct a court-supervised auction.
“We’re gathering information and evaluating the situation,” he said.
The other two members of the committee are Essa Alley, the president of Vratsinas Construction Co. in Little Rock, Arkansas, and Harold Thompson, a vice president of RTKL Associates Inc., an architecture and engineering firm, according to court documents. Alley declined to comment, and Thompson couldn’t be reached.
Construction Company Debt
Vratsinas Construction says it’s owed $4 million from the Rangers, and RTKL says it’s owed $2.9 million, according to court documents.
The companies are suing the Rangers and entities run by team owner Thomas Hicks, according to a copy of the complaint they filed with their claims. They say they haven’t been paid for work they performed on an aborted real-estate project called “Glorypark” next to the Rangers ballpark in Arlington, Texas.
Mark Semer, a Rangers spokesman, declined to comment.
The case is In re Texas Rangers Baseball Partners, 10- 43400, U.S. Bankruptcy Court, Northern District of Texas (Fort Worth).