((HT: Globesports/Waldie))
The National Hockey League is trying to block an attempt by Coyotes controlling owner Jerry Moyes ((pictured, thanks CP)) to force it to disclose details about a rival bid for the club.
Moyes wants a bankruptcy court judge in Phoenix to force the NHL to provide information about its discussions with Jerry Reinsdorf, owner of the Chicago White Sox and Chicago Bulls. The league has argued that it was close to a deal with Reinsdorf just before Moyes put the club into Chapter 11 protection on May 5 and announced a proposed sale to Canadian businessman Jim Balsillie for $212.5-million (U.S.). However, the NHL has not provided details about a possible deal with Reinsdorf.
On Monday, lawyers representing Moyes filed a motion seeking to compel the NHL to provide information about the discussions so that he could “examine the content of those discussions and the potential offer outstanding by Mr. Reinsdorf”.
This morning the NHL shot back, arguing in a court filing that there was “no justification for the efforts of [Coyote's] former principal Jerry Moyes to harass the league” with such a request.
The NHL argues that the court has to first determine who controls the Coyotes –- the NHL or Moyes – before dealing with this kind of request. It also argues that disclosing “any expressions of interest in the team could be harmful”.
“Forcing the early disclosure of information relative to such an investment, especially if it may be given to a competing “bidder” like Mr. Balsillie, could disrupt a value maximizing process,” the NHL argued. “The NHL has demonstrated its commitment to the success and welfare of the Phoenix Coyotes by providing additional financing to support the venture.”
A judge has yet to rule on the issue...
Darren Dreger from TSN adds the following:
In court documents obtained by TSN, the NHL charges the motion submitted on Monday by Moyes' legal team is ''premature'' and should be ''denied.''
"Pending the determination of who is in rightful control of the Debtors, there is no justification for the efforts of the Debtors' former principal, Jerry Moyes, to harass the league with such discovery that may prove wholly unnecessary. Premature disclosure of confidential discussions will jeopardize value for the league and all of its member teams, including the Phoenix Coyotes, as well as the team's creditors."
On Monday, Moyes filed the motion amid continued NHL speculation there are other groups interested in buying the Coyotes.
''The National Hockey League purports to have entered into discussions with, among others, Jerry Reinsdorf regarding his interest in potentially purchasing the Phoenix Coyotes club. Moreover, the National Hockey League has publicly announced it has been involved in discussions with groups, entities, or individuals other than Mr. Reinsdorf regarding the potential sale of the Phoenix Coyotes. The purpose of the production is to examine the content of those discussions and the potential offer outstanding by Mr. Reinsdorf related to these purported interests.''
At this point, the judge in this bankruptcy case has not granted the motion, but could do so at some point today.
If the Moyes motion is granted, the NHL will have to produce the content of discussions with Reinsdorf, and perhaps any other interested purchase groups.
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