Dallas billionaire Tom Hicks risks losing control of the Texas Rangers and Dallas Stars now that his sports firm, HSG, has formally defaulted on $525 million in loans, financial experts say.
Although experts agree that creditors could force HSG into bankruptcy, that possibility also appears to be a long way down the road.
"A banker doesn't want to own a baseball team, but it would be possible to put enough pressure on Hicks where the team ownership would be changed," said Stan Block, a finance professor at the Neeley School of Business at Texas Christian University.
Lenders have notified HSG that it has formally defaulted on $525 million in loans. Hicks said recently that he intentionally missed the March 31 interest payment as he tries to restructure the debt.
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According to The Wall Street Journal, Hicks missed a $10 million quarterly interest payment on HSG loans. The paper reported that the largest lender is Galatioto Sports Partners, a New York sport-financing group, which has lent nearly $100 million to HSG.
In a statement on Tuesday, Hicks reiterated that he is in negotiations to restructure HSG's debt and emphasized that the baseball and hockey teams have not been affected by the discussions.
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