On Wednesday, the Delaware court overseeing the Alpha Entertainment Bankruptcy case approved the Liquidation Agreement set forth by Vince McMahon.
The Agreement tells how the claims will be paid, who gets paid, and when. Also included are the important dates for voting by the unsecured creditors, and when an objection can be filed.
The unsecured creditors received a Liquidation Analysis that is required in Chapter 11 bankruptcy cases to see what they could stand to gain-or lose-by rejecting the agreement. Which would allow for the case to be changed to a Chapter 7 liquidation.
This case only has 1 secured creditor, or also referred to as the prepetition lender, which is the person or entity that funds the case. That person is Vince McMahon.
McMahon put up a total of $9 million to fund the case. In October he reduced the amount of his claim to $8.25 million. But according to the document, he will get $2.6 million.
The claims for the unsecured creditors’ claims have been assessed at $45 million. They will get 10% of that, along with a recent payment of $1.5 million from the estate of the now-defunct Miami Air.
A total of $74 million was claimed against Alpha, but only $54 million of that has been declared by the court. This happens when a creditor files too late, or the claim has been deemed without merit.
Alpha has also been added as a defendant to the Oliver Luck lawsuit against McMahon. In response to this suit, Vince filed a counterclaim, and if he wins, all allotted monies go to the unsecured creditors, per a court order filed by McMahon.
The case is set to be completed in January, and we can finally move past this blemish on the league, and get to what’s important, The XFL.
For the Love of Football