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The final sale price of the Dallas Stars and half of American Airlines Center to Tom Gaglardi resulted in a huge haircut for creditors of Hicks Sports Group and the National Hockey League team.
A bankruptcy court judge approved the Vancouver businessman's bid last week for an enterprise value of $240 million. Gaglardi is president of Northland Properties, a hotel, restaurant and construction company in Western Canada that was founded by his father, Bob. Last year, it was reported that Northland does $600 million in annual revenue.
Gaglardi's purchase includes just $50 million of cash. Meanwhile creditors, who had net debt of $290 million tied to HSG, the team and its 50% stake in the arena, got destroyed. First lien creditors got about 75 cents on the dollar and the second liens got virtually zero. In addition, the priming loans (to fund operating losses), accumulated interest and bankruptcy fees cost creditors over $50 million.
After debt service and depreciation, the Stars lost $38 million during their the last fiscal year and $92 million over the last three seasons.
