A 7 percent share of the Sacramento Kings is about to head to the auction block.
The share held by bankrupt Sacramento developer Bob Cook is expected to be sold off, with the proceeds split among three creditors.
David Flemmer, the court-appointed bankruptcy trustee overseeing Cook's assets, had wanted to put the share up for sale in March. But months of litigation ensued as one of Cook's creditors - a firm in Capitola called Omni Financial - said it was already the rightful owner of the 7 percent stake after Cook defaulted on a loan.
A compromise was worked out, allowing the sale to move forward and the proceeds to be split between Omni and other creditors, with Omni taking up to 47 percent. The compromise proposal was filed late Wednesday in U.S. Bankruptcy Court in Sacramento by Flemmer's attorney, Donald Fitzgerald.
The 7 percent share could be sold to one of the existing Kings' owners, including the Maloofs, who control 53 percent. An outsider could also enter the picture.
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