Canadian millionaire Jim Balsillie put in a more than $200 million offer to buy the struggling Phoenix Coyotes, provided he can relocate the team in Canada. Canadian millionaire Jim Balsillie put in a more than $200 million offer to buy the struggling Phoenix Coyotes, provided he can relocate the team in Canada. (Dave Chidley/Canadian Press)

As a preliminary bankruptcy hearing was held Thursday in Phoenix, representatives for Jim Balsillie met with the mayor of Hamilton to talk about the Canadian billionaire's offer to purchase the financially troubled Phoenix Coyotes and the possibility of them playing at Copps Coliseum.

Coyotes majority owner Jerry Moyes filed for Chapter 11 bankruptcy protection on Tuesday, at which time he confirmed that Balsillie offered $212.5-million US to buy the Coyotes on the condition that he can relocate the franchise in southern Ontario.

Balsillie also agreed to provide $17 million in bridge financing to keep the Coyotes operating in advance of the proposed sale.

Moyes attended Thursday's bankruptcy hearing in Phoenix, where the NHL challenged his authority to file for Chapter 11 protection.

Deputy commissioner Bill Daly told reporters following the preliminary hearing that the league assumed control of the Coyotes last November and could produce signed documents to that effect.

Daly issued a statement Tuesday that the NHL removed Moyes "from all positions of authority to act for or on behalf of the club."

Daly reportedly was appointed as chief executive officer of the team.

Moyes's lawyer, Thomas Salerno, said Moyes has lost more than $200 million in equity and more than $100 million in debt since buying the franchise with developer Steve Ellman for $90 million in 2001.

With 70 onlookers sitting in the courtroom, Salerno told Judge Redfield T. Baum that the key question to be answered is "Who is in charge?," referring to the NHL or Moyes.

League officials told Baum that, under an existing loan arrangement with Moyes, the NHL is prepared to meet the team's financial obligations for the next two to three weeks.

Lawyers for Balsillie and Moyes, led by Susan Freeman of Balsillie's PSE Sports & Entertainment LP, requested the sale order be approved by June 22.

But the NHL argued that wasn't enough time to complete a transaction.

Legal counsel for the NHL Players' Association and the City of Glendale, Ariz., where the Coyotes play, took part in the hearing by telephone.

No motions have been filed, but further hearings have been tentatively scheduled for May 13, 15 and 19 — at which time, Baum is expected to render a decision.

Meantime, representatives for Balsillie, who is co-chief executive officer of Research In Motion — maker of BlackBerry mobile devices — spoke with Hamilton Mayor Fred Eisenberger about the availability and suitability of Copps Coliseum.

Eisenberger told reporters Thursday that he is interested in negotiating a long-term agreement with Balsillie, in exchange for the exclusive hockey rights at the downtown arena, which was originally designed to house an NHL team.

Eisenberger estimated that Copps Coliseum will need $100 million in upgrades.

When Balsillie tried — and failed — to purchase the Pittsburgh Penguins in 2006 and the Nashville Predators in 2007, he was prepared to spend upward of $160 million to renovate Copps Coliseum for them.

With files from The Canadian Press