- National Digital Television Center is owed over $10k
- Comcast Sports Management Services is owed over $1.2 million
- Comcast SportsNet California is owed over $43k
- Houston SportsNet Finance is owed over $100 million
After the Houston Astros file a motion to dismiss this filing, the creditors mentioned above will have one week to respond. Judge Marvin Isgur, a United States Bankruptcy Judge, will preside over this case.
Who owns CSN?
Knowing who owns majority shares of CSN will help in understanding who has the most to lose. According to a Forbes report, the Houston Astros own just over 46 percent of CSN, making them the majority stakeholders. The Houston Rockets, an NBA team, own nearly 31 percent and NBC/Comcast owns just over 22 percent.
Why are the Houston Astros seeking a bankruptcy dismissal?
The Astros are able to file this dismissal on the grounds that they have the ability to pay all debts owed to the various creditors.
What would happen should the bankruptcy go through?
If the Astros were unsuccessful in their dismissal and the bankruptcy did go through, CSN would not shut down. What the creditors want is for this Chapter 11 bankruptcy case to be managed by a trustee while the case is being heard. This is an unfavorable option for the Astros, as this scenario would allow the trustee to make decisions without their approval.
The Astros issued a statement saying,
“Despite not receiving our media rights fees, our objective has not changed. We will continue to work toward obtaining full carriage so that all of our fans are able to watch the Astros games while making sure that the Astros are able to compete for championships.”
Chapter 11 bankruptcy is filed by businesses. This type of bankruptcy was filed as an involuntary petition, rather than a voluntary petition. This is because, with Chapter 11, the creditors can file bankruptcy in order to get payment. In these types of bankruptcy cases, the trustee plays a major role by enforcing bankruptcy procedures and making major decisions.
The Astros had the opportunity to file a motion to dismiss this filing because with Chapter 11, according to the U.S. Courts, debtors in possession have this right before the bankruptcy plan is confirmed. To learn more about motion to dismiss a Chapter 11 bankruptcy proceeding, visit 11 U.S.C. § 365 or speak with a San Antonio bankruptcy lawyer from The Malaise Law Firm directly.