Delaware bankruptcy Judge Kevin Gross denied a request by Los Angeles Dodgers attorneys to have Major League Baseball produce a wide-ranging set of documents designed to show Bud Selig treated Frank McCourt differently than other MLB owners.
Not a complete surprise. The Los Angeles Dodgers are seeing bankruptcy protection and have arranged $150 million in Debtor-in-Possession (DIP) financing from a JP Morgan hedge fund under some pretty onerous terms — 10+% interest, etc. Major League Baseball, ostensibly to preserve the value of the franchise and to prevent McCourt from taking any more money out of it and Dodger Stadium, is contesting the arrangement, saying it will lend the Dodgers DIP financing at a much lower interest rate with more liberal repayment terms,
The fishing expedition for documents was designed to provide some proof that MLB is plotting to take away the Dodgers from McCourt and using his divorce to Jamie McCourt as a vehicle. Gross was unimpressed with the argument and denied the request, ruling what Selig does with other owners was too broad a topic under the circumstances.
The court battle will continue.
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