UPDATED
A holding company of Dallas billionaire Tom Hicks, the owner of the Texas Rangers and Dallas Stars, defaulted on $515 million in loans, the company confirmed in a news release Friday evening.

This comes as Hicks is seeking minority investors for the Rangers and Stars, including Rangers President and former pitcher Nolan Ryan.

"We continue to interview prospective partners for the team, and we are optimistic because these are two strong long-term investments for the right people," Hicks said in the statement.

The Hicks Sports Group failed to make an interest payment on loans March 31 as part of negotiations with its lenders regarding the debt terms and covenants related to the teams, according to the release.

Hicks says he is hopeful a deal with the 40 lenders will be reached despite the "challenging economic environment."

"We are simply ask the lenders to be reasonable," Hicks said, "and they need to understand that these important assets must be managed with a long-term perspective and a commitment to winning. That's in the best interest of the franchises, HSG, our employees and certainly our fans."

Hicks is calling it a "business dispute" and says there will be no impact on the Rangers or Stars operations or the fans' experience.

Hicks' stake in England's Liverpool Football Club is part of another group and isn't directly affected by this.

"Like so many other companies and institutions, HSG has been impacted by a global credit crisis which no one could have anticipated," Hicks said. "The company is not asking for additional money; it is only asking for full access to the interest reserve account and revolving credit line as well as some amendment in the debt covenants."

3 Comments

Clay said:

Forgot to pay interest on loans? Maybe he forgot that he owned the Rangers too? Hey Tom, would you please sell all of your shares to Nolan and just stop trying to own sports teams cause you are not good.

April 3, 2009 3:32 PM

Carl said:

Where's Mark Cuban when we need him? Forget the Cubs Mark, save our Texas Rangers from Hicks!!!!!

April 3, 2009 4:14 PM

RAD said:

TOM, TOM, TOM....Just because your Sports teams are in the tank does not mean you have to take a victim mentality and default on your loans.....Honor Your Obligations!

April 4, 2009 3:58 PM

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