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Hicks Defaults on $525 Million in Loans

In case you couldn't guess why Tom Hicks put minority interest in the Texas Rangers and Dallas Stars up for sale, the answer came today as Hicks Sports Group defaulted on $525 million in loans by missing interest payments. Those loans are supposedly secured by the interests of Hicks in the Rangers and the Stars but not in Hicks' interest in English Premier League club Liverpool FC, which would account for the uncertainty surrounding its sale status last week.

Hicks Sports is involved in negotiations with its lenders over the terms and covenants of the loans, the Dallas-based company said in an e-mailed statement. The team owner decided to withhold last week?s interest payment ?as part of its negotiations,? Hicks Group said.

?We are simply asking the lenders to be reasonable,? Tom Hicks, 63, said in the statement. ?They need to understand that these important assets must be managed with long-term perspective and a commitment to winning.?

Full post as published by Sports Biz on April 03, 2009 (boomark / email).