Feb 17, 2011, 10:00 AM EDT
I don’t pretend to understand high finance that well — and I tend not to get my business news from the New York Post — so someone who knows more about this stuff than me tell if this is really a bad sign or if it’s much ado about nothing:
Banks that provided roughly $400 million in loans to the New York Mets are starting to unload some of that debt at a discount, a sign that creditors are getting nervous about the team’s finances, The Post has learned.
Potential buyers are bidding around 90 cents on the dollar for the debt, sources said. At least one creditor has bought a debt slice at a discount with the approval of Major League Baseball, which must sign off on any buyer of the team’s loans, said one source.
“This tells me the original lenders are scared,” a source close to the situation said.
Is it possible that lenders — freaked out about their returns — could start to panic and a chain reaction could happen that would force the Mets into bankruptcy like the Rangers were? I’m not trying to be alarmist here: unlike Tom Hicks, who had been in the papers for silly finances for some time before the Rangers went into bankruptcy, I really don’t know enough about the Mets’ situation to say anything too intelligent yet. I’m really curious to know.
For now, though, I can at least say that that stuff doesn’t sound good.
- Matt Garza ejected after hitting Andrew McCutchen a second time 2
- Tigers hang on for second straight win against Royals 2
- Phil Hughes could finish the season with the best K/BB ratio in MLB history 10
- Settling the Score: Friday’s results 25
- Clayton Kershaw wins his 20th game of the season 11
- Why are so many people acting like Bryce Harper is a bum? 80
- It certainly looks like Barry Bonds’ criminal conviction is going to be overturned 100
- And That Happened: Thursday’s scores and highlights 72
- Geddy Lee’s baseball obsession makes it really hard for me to hate Rush (110)
- Ron Washington claims he resigned because he cheated on his wife (103)
- It certainly looks like Barry Bonds’ criminal conviction is going to be overturned (100)
- And That Happened: Tuesday’s scores and highlights (83)
- Umpire ejects jackwagon fan heckling Bryce Harper in Atlanta last night (82)