By Terry Bigham
The Dallas Morning News
Published March 21, 1989
Reprinted by permission of the Author.
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After U.S. bankruptcy judge Robert McGuire refused to allow a 72-hour extension on Monday, the Sidekicks' general partners made the $260,000 payment to comply with the bankruptcy court's ruling and keep the club operational.
The bankruptcy court ruled Thursday that the Sidekicks' owners had to inject $260,000 into the franchise by 1:30 p.m. Monday or the Sidekicks' largest creditor, the Mavericks, could foreclose on the team. The court also said three seperate payments of $130,000 each in April, May and June will have to be made by the Sidekicks' owners to keep the franchise operating.
The Sidekicks' general partners -- majority owner Stan Finney, Jan Rogers, Joe Shea and Tom Kalaha -- put up the $260,000 on Monday and will now begin preparing a reorganization plan.
"We hope to have a (reorganization) plan submitted in a couple of weeks,' said Finney, "and we'd like to have it confirmed around the middle of May.'
"We're pleased the Sidekicks owners have agreed to go ahead and put up the money required by the court to continue the operation of the Sidekicks,' Mavericks attorney Doug Adkins said. "We would like the Sidekicks to finish the season and have the current owners or potential new owners work out a payment schedule (on the note).'
Monday's payment allows the club to complete the rest of the season and begin preparing for next year. The Sidekicks are hoping to sell 5,000 season tickets for the 1989-90 season and are running a "Say Yes' program in which fans can put down a $10 deposit for a season ticket next season.
"We're now able to continue and complete the season and get everything in order,' Sidekicks president Gordon Jago said. "For the players and fans, we've been in nowhere-land. It has been a very distracting situation.'
The Sidekicks filed for Chapter 11 regorganization and protection from the Mavericks on Feb. 13. Mavericks owner Donald Carter, who also owned the Sidekicks until June 1986, had planned to ask a state court for an order directing the Sidekicks to surrender all assets because of a $560,000 outstanding note, which was due in July 1988.
But by complying with the court's ruling, the Sidekicks can concentrate on working out a plan for one of two prospective owners to purchase the club out of bankruptcy. Dallas oilman David Paschal and a group headed by Tom Stone, a Dallas real estate developer, are interested in the franchise.
"I'll be talking to a number of people,' said Finney. "Now I'll finally have some time to go out and try to make the best deal I can for everybody.'
Paschal, who is in Hawaii on vacation, said he has been in contact with Finney and representatives of the Mavericks. Paschal said he could be ready with a reorganization proposal by the middle of next week.
"We're trying to work things out with Carter,' Paschal said. "The truth is, whoever ends up with the team needs to satisfy Mr. Carter.'
Paschal, who had an accounting firm do a preliminary financial report on the Sidekicks, has received the report and said, "It does not dampen my enthusiasm. It was pretty much what I expected.' Paschal said the club faces numerous financial problems but would not elaborate on the specifics of the report.