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.
- Anibal Sanchez loses his bid for a no-hitter with one out in the eighth inning 9
- The Yankees, A-Rod resolve their dispute over the $6 million milestone bonus 28
- Yankees donate $150,000 to charity to get Alex Rodriguez his 3,000th hit ball 17
- Mike Scioscia says Josh Hamilton should apologize to Angels owner Arte Moreno 82
- Settling the Scores: Thursday’s results 54
- Breaking: Cardinals fire their scouting director, likely due to the Astros hacking scandal 61
- Bryce Harper is naked in ESPN’s “Body Issue” 54
- Today is the day: Marlins ace Jose Fernandez returns from Tommy John surgery 4
- Settling the Scores: Sunday’s results (99)
- Mike Scioscia says Josh Hamilton should apologize to Angels owner Arte Moreno (80)
- What Yasiel Puig being a pain in the butt means. And what it doesn’t mean. (78)
- Report: Jerry Dipoto “definitely out” as Angels GM (77)
- Brian Dozier is the best second baseman in baseball (72)