Los Angeles Dodgers file for bankruptcy protection | MLB.com: News

LOS ANGELES — The Dodgers filed for Chapter 11 bankruptcy protection in a Delaware court Monday, citing Commissioner Bud Selig’s decision not to approve a media contract and triggering the start of legal proceedings that will decide the fate of Frank McCourt’s ownership.

With payroll obligations of approximately $30 million due Thursday and the organization’s cash drained, McCourt sought the court’s intervention in staving off a seizure of his club by MLB and its eventual sale.

According to the filing, McCourt received a commitment of $150 million in debtor-in-possession financing that will “enable the Dodger organization to fully meet its obligations going forward,” including making payroll and benefits payments coming due. There would be no disruption in the club’s day-to-day business, the release stated.

via Los Angeles Dodgers file for bankruptcy protection | MLB.com: News.

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