By Terry Bigham, The Dallas Morning News
Published April 4, 1989. Reprinted with the permission of the author
Dallas oilman David Paschal, seeking to help the Sidekicks out of bankruptcy and become the majority owner, said on Monday he will pay the entire $560,000 note due to Mavericks owner Donald Carter.
"I met with (Mavericks attorney) Doug Adkins, and we don't have anything in writing yet, but we agreed Carter will get back all his money in a period of time,' Paschal said. "We haven't established the period of time yet. It has been my contention all along (Carter) is due his money. If the team prospers, he should certainly receive what is owed to him.'
"(Carter) is willing to work with the team, and he's not being difficult,' Paschal. "He just wants his money. The thing that came out of the meeting is that he does want the team to succeed, and as long as we treat him right, he'll treat us right.'
The Sidekicks filed for Chapter 11 protection on Feb. 13 after Carter's attorneys notified the Sidekicks that he would seek court action against the club. Carter wanted the club's assets, mainly the players' contracts, to satisfy the $560,000 note that was seven months overdue. The current Sidekicks ownership group, headed by Stan Finney, purchased the club from Carter in 1986 and the sale was secured by the note.
At the bankruptcy hearing last month, the court ruled the Sidekicks' owners would keep the franchise provided they put up additional capital to keep the club operational.
A reorganization plan, however, would still need to satisfy the note to Carter, the club's largest secured creditor.
Finney said satisfying the note is the major problem in getting the Sidekicks through a reorganization and having Paschal purchase a majority interest.
Paschal said Carter could allow as long as five years for him to pay off the note. Paschal said the note is made up of $519,000 in principal and about $50,000 in interest owed.
a payment schedule with Carter is part of the reorganization plan that Paschal
and Finney hope to present to U.S. bankruptcy judge Robert McGuire within two
weeks. The reorganization would leave the current ownership group with 20 percent,
while Paschal would control 80 percent.