Boston, MA 08/08/2014 (wallstreetpr) – AT&T Inc. (NYSE:T) as well as DIREC TV (NASDAQ:DTV) will be jointly owning the Houston sports network as per the plan, in order to curtail bankruptcy of the network. Nevertheless, the proposal might attract challenge, as the present part-owner of the network, Comcast Corporation (NASDAQ:CMCSA) warned so.
The Houston Regional Sports Network and Bankruptcy
The Network operates as Comcast Sportsnet Houston and is the broadcaster of Houston Astros baseball along with Houston Rockets basketball teams’ games. In order to save the network from possibility of nearing bankruptcy, DirecTV Sports Networks might own 60%, giving 40% to AT&T.
The documents associated with the same have been filed with the Houston-based U.S. Bankruptcy Court. The plan, in order to conceptualize, should go to the voting table of creditors, while also being given approval by the U.S. Bankruptcy Judge, Marvin Isgur.
Comcast’s Objection
In the meanwhile, Comcast Corporation (NASDAQ:CMCSA) objected the plan, saying that its current form was not acceptable to the company. In a statement issued by the company, it was said that the plan for reorganizing The Houston Regional Sports Network led to increased concerns in terms of equitable treatment of this network along with its constituencies. The company also added that it would exercise the available rights in order to ensure that the process remained fair.
Background of Bankruptcy
The Houston Regional Sports Network reached bankruptcy level by Comcast Corporation (NASDAQ:CMCSA)’s unit, which loaned $100 million of the network; thereby filing involuntary bankruptcy in September 2013 against it. During that time, Comcast said that it should be prepared for bidding for sale.
Now, the network has a liability worth $27.8 million towards Astros in the form of unpaid licensing fees from 2013, along with a liability worth $44.4 million towards the Rockets for 2013-14 seasons. The network has planned to strike off the liability from its books to some extent by paying the teams, some amount by way of pursuing legal claim against Comcast.
