The Maloofs have given a bankruptcy trustee some of the documents regarding the sale of the Sacramento Kings to a Seattle group, it was revealed today.
The documents could figure in the trustee's assertion that the Maloofs may be improperly denying the team's limited partners a chance to match the Seattle group's offer for the team.
David Flemmer, the bankruptcy trustee overseeing limited partner Bob Cook's 7 percent share of the team, has been negotiating with the Maloofs for weeks to get documents related to the Seattle deal. Flemmer's attorney, Don Fitzgerald, said in U.S. Bankruptcy Court today that the Kings relinquished some of the documents Friday and are expected to release more records today.
An "outline" of the sale agreement will be made available on a confidential basis to "qualified bidders" seeking to buy Cook's 7 percent share, Fitzgerald told U.S. Bankruptcy Judge Christopher Klein.
Flemmer is investigating whether limited partners have the right to match hedge fund manager Chris Hansen's offer for the Maloofs' 65 percent share of the Kings.
If that proves to be the case, it could dramatically inflate the value of the 7 percent share Flemmer is auctioning in April - and, depending on who wins the auction, could enable bidders to block the sale to the Hansen group. Notably, Ron Burkle and Mark Mastrov - the two wealthy investors who are discussing a possible counter-offer to keep the team in Sacramento - could derail the Seattle purchase by buying Cook's share.
Read more articles by Dale Kasler
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