The Rock’s purchase of the XFL is already facing opposition.
As reported, here on WrestlingNews.com, The Rock, along with RedBird Capital have agreed to purchase the league out of bankruptcy.
A group of the XFL’s creditors, known as the Official Committee of Unsecured Creditors for Alpha Entertainment, filed a motion attempting to stop the purchase of assets by Rock and RedBird Capital on Monday afternoon. Alpha Acquico LLC, the company created by The Rock’s group to purchase the league, is set to purchase all of the XFL’s assets for $15 million. The company will agree to take on “certain specified liabilities,” with $8.5 million financed toward payments needed to resolve previous financial defaults.
The motion is 13-pages and argues that Alpha Entertainment, the company Vince McMahon setup to fund the XFL, has an “ongoing obligation to negotiate terms with the Proposed Buyer that are most favorable to the estate and do not unduly prejudice its creditors.” It argues the proposed sale “seeks to strip the estate of valuable assets for no consideration. As such, the Committee has significant concerns that the Sale contemplated with the Proposed Buyer does not satisfy the sound business purpose test, and is not in the best interests of the Debtor’s estate.”
All and all, the motion argues Alpha Entertainment is selling the XFL below what they are worth and the creditors are concerned about not receiving significant monetary gain for the sale. It argues certain assets being sold were not in the financial evaluation when the bankruptcy was filed.
The creditors support the sale to Alpha Acquico but want a more favorable deal. They will continue to negotiate with the XFL and Alpha Acquico to resolve the issues.
This story was first reported by PWInsider.com.
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