The View From Wisconsin

Just a random set of rants from a Sports Fan from Wisconsin.

Sunday, September 13, 2009

Chapter 7

No, I'm not talking about a portion of scripture today; I'm talking about bankruptcy - the "bad" kind. Chapter 7 bankruptcy is simply described as "cutting up the debtor's assets among the creditors."

In essence, it's liquidation - a business that declares Chapter 7 bankruptcy ceases operations and a trustee appointed by the court sells off pieces of the the company to the creditors. Once all the creditors are paid off and all the pieces are sold, the case is done and everyone moves on with their lives.

So why would I be talking about bankruptcy? No, not because of my personal financial situation (thank God); it's because of the circus that's going on in Phoenix over the "sale" of the Coyotes.

A Coyotes fan by the handle TheYotesDiva (the head of the Save The Coyotes Coalition) made a very interesting point about the sale on her Twitter feed:

"I've been frustrated with Judge Baum (the judge overseeing the case) for not making any decisions on anything and drawing this thing out; but I just realized something: he didn't rule on anything because it would've drawn things out even more. The more decisions he made, the more appeals the lawyers would file. He's going to rule on everything at once and I'm willing to bet that he'll go the path of least resistance."
Unfortunately, the "path of least resistance" is to rule against all parties involved. That would mean Chapter 7 bankruptcy for the Coyotes.

What exactly would this mean for everyone involved? Let's go through it from top to bottom:
Baum mentioned the idea of going to Chapter 7 a few times over the previous week, and he may have used the nuclear option as a veiled threat to make the two sides (the NHL and PSE) come to some sort of an agreement that would allow for a ruling that wouldn't be appealed constantly.

If neither side is willing to budge, though, be prepared to see the dissection of the Coyotes - and people in PHX screaming when they hear the number 7.