NHL's Buffalo Sabres file for bankruptcy protection
Last Updated: Monday, January 13, 2003 | 6:41 PM ET
CBC News
Court documents show the team owes it largest creditors more than $206 millionnUS.
But National Hockely League commissioner Gary Bettman welcomed the filing.
"It's actually good news," he said, because along with the filing, the league has lined up money to keep the team going until it's sold to Buffalo businessman Mark Hamister and his New York partner, Todd Berman.
- FROM JAN. 9, 2002: Judge grants Ottawa Senators bankruptcy protection
The Sabres are the second NHL team to file for bankruptcy protection in the past week. Ottawa Senators filed on Thursday, owing creditors $160 million.
The Sabres filing was expected, and will give the team time to restructure and stabilize its financial situation, Buffalo Mayor Anthony Masiello said.
| RELATED |
| * Coverage from CBC Sports |
The NHL took over the team's operations after the downfall of owner John Rigas and his Adelphia Communications Corp. Rigas faces fraud charges after he allegedly "looted Adelphia on a massive scale, using the company as the Rigas family's personal piggy bank," prosecutors said in July.
- FROM SEPT. 23, 2002: Adelphia founder and sons indicted on fraud
Adelphia, the Sabres' largest creditor, is owed $157 million US and is also in bankruptcy protection.
Rigas ran the Sabres separately from Adelphia, but used the cable TV company's money to back his purchase of the team, giving rise to the debt.
Bankruptcy protection allows a business to continue operating even if it is out of money. Once under court protection, lenders will advance failing companies more money, secure in the knowledge that they will go to the top of the creditors' list.
Share Tools
Top News Headlines
- Everest victim's husband says family not seeking government help
- The husband of a Toronto woman who died trying to climb Mt. Everest on Saturday says his family is not seeking government help to cover the cost of bringing his wife's body home. more »
- B.C. premier unhappy with disgraced Mountie's transfer
- B.C. Premier Christy Clark says she is not happy with the RCMP decision to transfer a disgraced Alberta Mountie to the West Coast. more »
- Henrique's OT goal sends Devils into Stanley Cup final
- The New Jersey Devils will vie for a potential fourth Stanley Cup in franchise history after defeating the New York Rangers in six games in the Eastern final, courtesy of rookie Adam Henrique's goal early in overtime. more »
- Employment Insurance review boards to be scrapped
- The federal government is scrapping two review boards used by people appealing decisions made about their employment insurance. more »
Latest World News Headlines
- Everest victim's husband says family not seeking government help
- The husband of a Toronto woman who died trying to climb Mt. Everest on Saturday says his family is not seeking government help to cover the cost of bringing his wife's body home. more »
- Canadian restrained on flight to Miami arrested
- A 24-year-old Canadian man is in federal custody for rushing toward the front of an American Airlines flight from Jamaica after the plane landed in Miami. more »
- Suspect in Etan Patz death described as mentally ill
- A lawyer for a man who police say confessed to choking to death a 6-year old boy in a landmark 1979 missing-child case said Friday his client is mentally ill and has a history of hallucinations. more »
- Reclaiming the dead on Mt. Everest
- The difficulty, danger and expense of removing the bodies of climbers who died in Mount Everest's "death zone" mean most of the dead remain on the mountain as a stark reminder to other climbers of the risks. more »
Dispatches »
- Foreign slaves serving the U.S. military machine May. 24, 2012 3:33 PM How does a hairdresser recruited for work in Dubai, wind up slaving for the U.S. military in a war zone in Iraq? There are tens of thousands serving in what's come to be known as America's "Invisible Army."
Connect Newsroom Blog
Etan Patz, Brian Banks & 50 Shades of Grey May. 25, 2012 8:56 PM On his first full day of his new life, former football star Brian Banks joins us live.
- Aylmer triple stabbing leads to first-degree murder charges
- Everest victim's husband says family not seeking government help
- B.C. premier unhappy with disgraced Mountie's transfer
- Third B.C. salmon farm quarantined
- What a Greek euro exit could mean for Canada
- RCMP officer charged in fatal crash
- Canada ending 'Buffalo shuffle' for visas, closing consulate
- Reclaiming the dead on Mt. Everest
- Employment Insurance review boards to be scrapped
