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I am familar and I wouldn't bet there are personal guarantee

Posted on: May 21, 2020 at 13:23:24 CT
ScottsdaleTiger MU
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I am familiar with the personal guarantee of corporate debt scenario.

First, I would suggest at this level of transaction with this quality of assets you may find there are no personal guarantees whatsoever.

Secondly, many of the liabilities are construction costs and, again, there may be no guarantees of any of the construction contracts.

Thirdly, it was suggested that some of the liabilities will be damages for the Rams moving from St. Louis. Is Kroenke personally a defendant in that suit?

Fourthly, in a Chapter 11 the test for a plan (which can stretch out a number of years) is whether or not it pays unsecured creditors more than they would receive if the case was in Chapter 7, a liquidation. That means that that while secured claims have to be paid in full, unsecured claims, i.e. the St. Louis lawsuit damage award can be substantially discounted and St. Louis be forced to accept the discounted amount over its own objection in a "cram down" situation.

Fifth, the Rams are reportedly owned by Kroenke Sport and Entertainment (believe that's the name). It owns a substantial number of other sports franchises including the Denver Nuggets and Arsenal FC (London). The key issue is probably whether or not its guaranteed the loans. This intervening ownership almost certainly isolates Kroenke personally from any liability.

Sixth, Kroenke's wife has an estimated net worth of 8-9 million (presumably WalMart shares). I would be totally dumfounded that any of the deals were structured in such a way to create any exposure for her.

And lastly, let me assure you that in this level of dispute the legal talent gets very, very good and very, very expensive. And clients often get what there money pays for.
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OT: Rams going Bankrupt? Part III - North co-co champs MU - 5/20 20:16:16
     RE: OT: Rams going Bankrupt? Part III - Role Call MU - 5/21 11:51:16
          RE: OT: Rams going Bankrupt? Part III - North co-co champs MU - 5/21 12:19:30
     A lot of local Sports stations have a ton of audio/video of - ADelpiero10 MU - 5/21 07:03:47
          And that part that I love most is that the NFL can't.... - North co-co champs MU - 5/21 09:05:43
     Are you familiar with Chapter 11 of the U.S. Bankruptcy Code - ScottsdaleTiger MU - 5/21 00:19:08
          Are you familiar with commercial loan financing? - OntheMark MU - 5/21 12:45:18
               I am familar and I wouldn't bet there are personal guarantee - ScottsdaleTiger MU - 5/21 13:23:24
                    Kroenke and every NFL owner is a defendant in that suit - OntheMark MU - 5/21 20:32:35
                    Defendants in the lawsuit are - BigDave MU - 5/21 15:06:08
          I am. You aren't obviously. 10 pro sports teams have.... - North co-co champs MU - 5/21 07:52:14
               Let's just wait and see what happens, but I suspect - ScottsdaleTiger MU - 5/21 12:39:15
                    All the possible outcomes are delicious (nm) - North co-co champs MU - 5/21 12:48:20
     Everything about the Rams move - BigDave MU - 5/20 23:58:41
          Ultimate settlement: NFL offers ST. Louis.... - North co-co champs MU - 5/21 00:06:22
               Why in the world would anyone want the - Sarazen KC - 5/21 13:39:29
                    You must not be familiar with its long storied history (nm) - North co-co champs MU - 5/21 15:04:35
                         Won't happen but if it does Stallions as the Jags should - Erwin Fletcher STL - 5/21 19:29:46
               The NFL isn't ever coming back to St Louis. - Fred G. Sanford MSU - 5/21 08:15:25
               That's laughable - samclemens MU - 5/21 07:23:03
                    Never won anything but the only Super Bowl in team history - North co-co champs MU - 5/21 07:53:21
                    They won a Super Bowl - 615Tiger STL - 5/21 07:34:53
                         Not to mention the fact - BigDave MU - 5/21 08:30:31
     Kick his ass in court and do it before he dies please. He - Erwin Fletcher STL - 5/20 23:22:22
          The universe sometimes feels like a simulation, and this - North co-co champs MU - 5/20 23:43:35
     This ****er makes Charlie O. Finley and Walter O’Malley - Grant1818 MU - 5/20 21:09:45
     The only thing funny though is - Genco98 MU - 5/20 21:06:45
     Why can’t Kronke just spend money on Mizzou - BurgTiger MU - 5/20 20:46:24
          No thanks. - Grant1818 MU - 5/20 21:12:05
               He disgusts me, but why not accept a few MIL (or more)? - winslow MU - 5/21 18:29:34
          He's in the reboot of 'Can't Buy Me Love' - "you coulda - North co-co champs MU - 5/20 20:48:44




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