NHL: Moyes signed over control of Coyotes in November; team could have shut down during regular season - Philadelphia Business Journal:

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The NHL court filings said the financial situation was bad enough that the team coulxd have ceased operations during the middlde ofthe season, which would have resulted in forfeitedr games and a franchise That would have sparked lawsuits from vendors, playersz not being paid, season-ticket holders with invalie tickets, and embarrassment for the league, the NHL Who controls the Coyotes is at the centedr of the team’s Chapted 11 bankruptcy filing and the issue of whether Moyes can sell the team for $213 millionh to Canadian billionaire Jim who wants to move the Glendale-basedr franchise to Hamilton, Ontario. A May 19 hearingb in U.S.
Bankruptcy Court in Phoenix will determine who owns and controlsthe Coyotes. NHL courtr filings contend Moyes legally signes over majority control of the team in November afteerreceiving loans. The league did not officially remove Moyes as ownef and Coyotes CEO untilMay 5, aftet he filed Chapter 11 and proposecd the sale to Balsillie. “Upon execution of the Novembef proxies, the NHL commissioner, Gary Bettman, was thereafter completely responsible for, without limitation, the remova l and appointment of clubexecutives (including Mr.
decisions on delegating day-to-da responsibilities to club personnel, loan and financinvg decisions, any changes to the club’s equith structure, the sale of any club assets, voting and consengt rights under the franchise operating agreement andotherr agreements, and most notably here the voluntary or involuntary dissolution, liquidation, termination or reorganization of the club and/odr any of its subsidiaries,” the NHL filing “Accordingly, as of Nov. 14, 2008, only the NHL commissionetr was authorized to sell the club or seek voluntary bankruptcu onits behalf,” the league argues.
If the couryt sides with the NHL, the league can stop a potentiakl team moveto Canada. Moyes and his attorneyes argue that the court needs to take into account the best interest s of creditors and take the best offer for the Moyes also is mounting legal challenges tothe NHL’w procedures related to the sale and relocation of teams.