Report: Devils In Danger Of Bankruptcy After Missed Loan Payment
NEW YORK (WFAN) – Move over, Mets.
There’s reportedly a new cash-strapped franchise in town.
The Devils’ lenders have “a breakaway chance to push the team into bankruptcy” after the team missed their Sept. 1 loan payment, the New York Post reported on Monday.
The Prudential Center in Newark, operated by Devils Arena Entertainment, is also “in danger” of bankruptcy, according to the paper.
A source told The Post: “The Devils are blowing up.”
Devils Arena Entertainment is $180 million in debt, the paper reported. The team owes “roughly” $100 million.
If they are declared bankrupt, the Devils will have 180 days before lenders can repossess the team. After that, they can force a sale.
And it could get worse if the Nets, who also play at the Prudential Center, are forced to cancel games because of the NBA lockout. According to Bloomberg News, Devils Arena Entertainment is in the black because of the Nets — and the hoops franchise accounts for 25 percent of the arena’s 161 events.
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