Up until Monday, the Chicago Cubs had not been included in the Tribune Company’s Chapter 11 bankruptcy proceedings. But the baseball team filed its own Chapter 11 petition Monday for technical reasons – and is expected to exit on Tuesday.
What’s this all about? The Cubs aren’t in any financial difficulties (unlike their current owner). The Tribune Company has a deal pending to sell the team to the Ricketts family for $823 million, which is expected to close by the end of this month.
In order to protect the Ricketts family and ensure that the creditors of the Tribune Company have no claim against the baseball team, the Chicago Cubs filed a Chapter 11 petition on Monday. The same bankruptcy judge overseeing the Tribune Company proceedings has scheduled a hearing for Tuesday, at which time he is expected to approve the exit from bankruptcy of the baseball team.