Post by wolfmannick on Apr 8, 2015 11:53:38 GMT -6
Just as Connor McDavid and Dylan Strome are about to cash in on an NHL career, it appears their junior team has declared bankruptcy.
According to GoErie.com, Erie Hockey Club Ltd. filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court in Erie.
"This will have absolutely no effect on Otters playoff games, on our staff, on our players, or any of our hockey or business operations," said team owner Sherry Bassin. "The Erie Otters Hockey Club has a strong and fundamentally sound underlying business. The team, the Ontario Hockey League and our corporate partners will be fully protected during this process.
"Today's filing provides us with the opportunity to continue to execute our business plan on a stronger footing, maintain normal operations of the hockey club as it fights toward an OHL championship, and smoothly continue the ongoing sale process. All of our efforts are focused on concluding this process in an efficient and successful manner."
The team is fighting an attempt by the Edmonton Oilers to force a sale of the team. The Oilers are suing the Otters to recover what they claim is $4.6 million in loans that were made to the team in a deal that would see the Oilers buy the team. However, the deal collapsed.
A judge dismissed that lawsuit but the Otters released a statement on Wednesday that the Oilers, through Ontario Major Junior Hockey Corp., plan on conducting a private sale of assets belonging to the OHL club.
"Erie Hockey Club strongly disputes the legality of this threatened action," the statement read. "However, despite repeated requests that the OMJHC refrain from pursuing this course of action, and permit Game Plan to finish the sale process in the ordinary course of business, OMJHC has refused to cancel this purported private sale. The filing of the Chapter 11 petition automatically stays any actions of OMJHC against the assets of Erie Hockey Club."
The Otters open their second round playoff series at home against the London Knights on Thursday.
According to GoErie.com, Erie Hockey Club Ltd. filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court in Erie.
"This will have absolutely no effect on Otters playoff games, on our staff, on our players, or any of our hockey or business operations," said team owner Sherry Bassin. "The Erie Otters Hockey Club has a strong and fundamentally sound underlying business. The team, the Ontario Hockey League and our corporate partners will be fully protected during this process.
"Today's filing provides us with the opportunity to continue to execute our business plan on a stronger footing, maintain normal operations of the hockey club as it fights toward an OHL championship, and smoothly continue the ongoing sale process. All of our efforts are focused on concluding this process in an efficient and successful manner."
The team is fighting an attempt by the Edmonton Oilers to force a sale of the team. The Oilers are suing the Otters to recover what they claim is $4.6 million in loans that were made to the team in a deal that would see the Oilers buy the team. However, the deal collapsed.
A judge dismissed that lawsuit but the Otters released a statement on Wednesday that the Oilers, through Ontario Major Junior Hockey Corp., plan on conducting a private sale of assets belonging to the OHL club.
"Erie Hockey Club strongly disputes the legality of this threatened action," the statement read. "However, despite repeated requests that the OMJHC refrain from pursuing this course of action, and permit Game Plan to finish the sale process in the ordinary course of business, OMJHC has refused to cancel this purported private sale. The filing of the Chapter 11 petition automatically stays any actions of OMJHC against the assets of Erie Hockey Club."
The Otters open their second round playoff series at home against the London Knights on Thursday.
