Cubs File for Chapter 11 to Speed Sale

By ANDREW VANACORE

posted: 46 DAYS 5 HOURS AGO

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NEW YORK -The Chicago Cubs baseball team filed for Chapter 11 bankruptcy protection Monday, a step that will allow its corporate parent to sell the team in an $845 million deal.

The filing in Wilmington, Del., was anticipated and is expected to lead to a brief stay in Chapter 11 for the Cubs. A hearing on the case was scheduled for Tuesday in front of the judge who has been handling the bankruptcy case of the Cubs' owner, Tribune Co.

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DENVER - OCTOBER 11: Todd Helton #17 of the Colorado Rockies fails to reach a foul ball against the Philadelphia Phillies in Game Three of the NLDS during the 2009 MLB Playoffs at Coors Field on October 11, 2009 in Denver, Colorado. (Photo by Jed Jacobsohn/Getty Images) *** Local Caption *** Todd Helton

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In this photo made Sunday, Oct. 11, 2009, Boston Red Sox closer Jonathan Papelbon, left, watches a hit by Los Angeles Angels' Bobby Abreu (53) in the ninth inning during Game 3 of the American League division baseball series in Boston. The Red Sox cleared out of Fenway Park on Monday, a day after they were swept out of the playoffs by the Los Angeles Angels. (AP Photo/Michael Dwyer)

In this photo made Sunday, Oct. 11, 2009, Boston Red Sox closer Jonathan Papelbon, left, watches a hit by Los Angeles Angels' Bobby Abreu (53) in the ninth inning during Game 3 of the American League division baseball series in Boston, Sunday, Oct. 11, 2009. The Red Sox cleared out of Fenway Park on Monday, a day after they were swept out of the playoffs by the Los Angeles Angels. (AP Photo/Michael Dwyer)

Inj this Sunday, Oct. 11, 2009, photo, fans watch Boston Red Sox closer Jonathan Papelbon walk to the dugout after being relieved in the ninth inning during Game 3 of the American League division baseball series against the Los Angeles Angels in Boston. The Red Sox cleared out of Fenway Park on Monday, a day after they were swept out of the playoffs by the Los Angeles Angels. (AP Photo/Michael Dwyer)

DENVER - OCTOBER 11: Jason Hammel #46 of the Colorado Rockies looks on against the Philadelphia Phillies in Game Three of the NLDS during the 2009 MLB Playoffs at Coors Field on October 11, 2009 in Denver, Colorado. (Photo by Jed Jacobsohn/ Getty Images) *** Local Caption *** Jason Hammel

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DENVER - OCTOBER 11: Troy Tulowitzki #2 of the Colorado Rockies flys out in the bottom of the ninth inning against the Philadelphia Phillies in Game Three of the NLDS during the 2009 MLB Playoffs at Coors Field on October 11, 2009 in Denver, Colorado. (Photo by Jed Jacobsohn/Getty Images) *** Local Caption *** Troy Tulowitzki

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DENVER - OCTOBER 11: Chase Utley #26 of the Philadelphia Phillies looks on against the Colorado Rockies during Game Three of the NLDS during the 2009 MLB Playoffs at Coors Field on October 11, 2009 in Denver, Colorado. (Photo by Jed Jacobsohn/Getty Images) *** Local Caption *** Chase Utley

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DENVER - OCTOBER 11: Jimmy Rollins #11 of the Philadelphia Phillies throws to first as Dexter Fowler #24 of the Colorado Rockies slides into second during Game Three of the NLDS during the 2009 MLB Playoffs at Coors Field on October 11, 2009 in Denver, Colorado. (Photo by Jed Jacobsohn/Getty Images) *** Local Caption *** Jimmy Rollins;Dexter Fowler

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Colorado Rockies' Troy Tulowitzki breaks his bat as he slams it to the ground after making the final out in the 9th inning of Game 3 in a National League baseball division series against the Philadelphia Phillies in Denver on Sunday, Oct. 11, 2009. Philadelphia won the game 6-5. Philadelphia Phillies catcher Carlos Ruiz is pictured at left.(AP Photo/ Jack Dempsey)

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DENVER - OCTOBER 11: Huston Street #16 of the Colorado Rockies watches the game-winning sacrifice fly which was hit by Ryan Howard #6 of the Philadelphia Phillies in the top of the ninth inning of Game Three of the NLDS during the 2009 MLB Playoffs at Coors Field on October 11, 2009 in Denver, Colorado. (Photo by Jed Jacobsohn/Getty Images) *** Local Caption *** Huston Street

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The Cubs' filing is part of the Tribune Co.'s plans to sell the team, Wrigley Field and related properties to the family of billionaire Joe Ricketts, the founder of Omaha, Neb.-based TD Ameritrade.

Tribune, which also owns the Chicago Tribune and the Los Angeles Times, filed for bankruptcy protection in December, but the Cubs were not included in the filing. The team's run through Chapter 11 is expected to protect its new owners from potential claims by Tribune creditors.

Tribune bought the Cubs in 1981 for $20.5 million from candy maker Wm. Wrigley Jr. Co. It announced plans to sell the franchise in 2007, but got tripped up by the recession and the collapse of the credit markets.

It has agreed to sell the Ricketts family a 95 percent stake in a deal that tops the record $660 million paid for the Boston Red Sox and its related properties in 2002. Tribune Co. is keeping the remaining 5 percent.

Major League Baseball's other team owners have approved the sale.

The Cubs' bankruptcy filing is not the first in baseball. The Baltimore Orioles were sold in a bankruptcy auction in 1993 after owner Eli Jacobs filed for Chapter 11. The same happened to the Seattle Pilots after the 1969 season. The new owners moved the team to Milwaukee and changed the name to the Brewers.

The National Hockey League's Phoenix Coyotes, a franchise that has yet to make a profit since moving from Winnipeg, Manitoba, in 1996, filed for Chapter 11 protection in May.

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2009-10-12 14:11:57