A 7 percent share of the Sacramento Kings is about to head for the auction block.
The share held by bankrupt Sacramento developer Bob Cook is expected to be sold off, with the proceeds to be split among Cook's creditors.
David Flemmer, the court-appointed trustee overseeing Cook's bankruptcy, originally proposed auctioning the Kings' stake in March.
But one of Cook's creditors, an investment firm from Capitola called Omni Financial, blocked the sale. Omni said it was already the rightful owner of the 7 percent share after Cook defaulted on a loan.
Months of litigation ensued. Now a compromise has been worked out that would allow the sale to move forward and the proceeds to be split among three creditors. Omni would get 47 percent.
The compromise proposal was filed late Wednesday in U.S. Bankruptcy Court in Sacramento by Flemmer's attorney, Donald Fitzgerald. A hearing is set for Nov. 21.
The 7 percent share could be sold to one of the existing Kings owners, including the Maloofs, the majority owners. An outsider could also enter the picture.
Cook has been a part-owner since the team relocated from Kansas City in 1985. He put up his 7 percent stake as security when he borrowed $10 million from Omni in 2006. He defaulted on the loan in 2009.
He filed for bankruptcy protection in 2011. Most of his problems stem from a troubled hotel development, the Le Rivage in Sacramento.
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