Besides its obvious entertainment value, Major League Baseball is a business as well, and many fans in the New York area and around the country understand that. An American League team, the Houston Astros, is preparing to file a legal motion to dismiss the bankruptcy case of Comcast SportsNet Houston that was filed by several creditors.
Comcast SportsNet Houston is in a partnership with the Astros, the Houston Rockets and NBC Universal/Comcast to provide coverage of sporting events to the Houston area. The Astros are the majority stake holder in the partnership. The creditors filed the involuntary bankruptcy against the partnership in September. The creditors who filed are owed over $100 million in a combination of trade receivables and loans. The Astros believe the bankruptcy is not needed because they can provide the cash flow to the partnership to pay the creditors.
At this point, only the cable network Comcast is carrying CSN Houston, and they provide service to only 40 percent of Houston area homes. The Houston mayor has negotiated with other cable companies, including DirecTV and Time Warner, to pick up the station, but those meetings have not lead to additional coverage. As the bankruptcy case proceeds, negotiation talks have stalled. Now that they are moving on to basketball season, the Astros have passed the ball to the Rockets as the key advocates in the proceedings.
Sometime in a business situation, filing for Chapter 11 bankruptcy is the most logical step to take. An attorney could be able to answer any questions that a business owner may have about the filing and present other reorganization options for the business to consider.
Source: Forbes, “Astros to Seek Dismissal of CSN Houston Bankruptcy Case“, Maury Brown, October 07, 2013by