Posted On: June 4, 2010
U.S. Trustee Names A-Rod to Texas Rangers Creditors Committee
Last month, the MLB franchise Texas Rangers filed for Chapter 11 bankruptcy in an effort to force a sale of the team that has been road blocked by creditors.Among those creditors is slugger superstar Alex Rodriguez, who is owed $24.9 million in deferred compensation by his old team and is the largest unsecured creditor in the Rangers’ bankruptcy case (In re: Texas Rangers Baseball Partners, U.S. Bankruptcy Court, Northern District of Texas, No. 10-43400).
The U.S. Trustee recently named Rodriguez as one of three people who will serve on the unsecured creditors committee. The other two members include the president of a Little Rock construction company and an executive with an architecture and engineering firm.
Creditors' committees can play a major role in chapter 11 cases, and usually consists of unsecured creditors who hold the largest unsecured claims against the debtor. The duties of the committee include consulting with the debtor in possession on administration of the case; investigating the debtor's conduct and operation of the business; and participation in formulating a plan.
If you have a business that needs protection from creditors and want more information about filing Florida Chapter 11 bankruptcy, contact our Jacksonville, Florida bankruptcy law firm.
Greg Gilbert
Keith Maynard
