Bankruptcy Saga Continues for Leafs

The new leadership at the Leafs have prevailed in court against Wells Fargo, who is representing the bond holders in the bankruptcy proceedings. Wells Fargo sought to have a Federal Trustee replace current management. How dare they! The Judge went for the Leafs plan instead. This means that the Leafs will control their own destiny when it comes to running the rink during Chapter 11 reorganization. However, significant matters are still at question ... such as how much of a haircut will be imposed on bondholders and what pound of flesh they can extract from the Leafs in exchange. Ultimately, the disposition of the asset (rink) will also be decided. I wonder if Canlan is looking for another bargain? Here is the full text of the message from newly elected President RJ Grewal:

I am pleased to announce that, as anticipated, the Rink/Club scored a decisive victory in the court action brought by Wells Fargo on behalf of the Bondholders to take control of the rink by having the Court appoint a Federal Trustee to replace current Management of the rink.   The Judge found in our favor on all points of the motion and found no grounds for the appointment of a Trustee.

I have attached the entire 44 page Opinion rendered by the Judge for your review.

This decision will allow us to move forward as planned and it is my sincere hope that it will pave the way for us to work together with Wells Fargo and the Bondholders in a positive and productive manner to reach an agreement that allows the Rink to exit bankruptcy.

I want to finish by thanking all those who worked on our behalf for the faith, work, and dedication they put in to ensure a positive outcome for all of us.

More after the jump. Previous coverage can be found here.
Here is a link to the Opinion:

Memorandum Opinion on Motion to Appoint Trustee

The Leafs set a very aggressive July 12 early registration date this year, one presumes to firm up numbers for the upcoming season by discouraging families from trying out at other clubs this fall. The new board was compelled to call a public board meeting on July 11 to answer the many questions of the member families prior to the deadline.

Since I haven't posted this yet, here is the letter RJ Grewal wrote to membership on June 6, 2013:

I am honored by the trust and faith the Executive Committee has chosen to show in me by electing me President of the Leafs Hockey Club.  I will do everything possible to justify that faith by working with the newly seated Board and the Membership to lead the Club into the future…

I would also be remiss if I did not acknowledge the tremendous effort and sacrifice of the out going President Danielle Gulli and long time EC Members Ed McHale, Tim Tighe, and Paul Letto.  The courage of conviction it takes to step off the sidelines and into the line of fire to lead an organization as large and diverse as the Leafs demands all of our respect and thanks.

As we prepare to open Fall Registration tomorrow and head into the 2013-14 season… I am acutely aware of turmoil in which we find ourselves.  The last year has been challenging for everyone involved with this Club on a number of levels.  We find ourselves at a crossroads…. There is uncertainty regarding the LIC and it’s ongoing legal issues….  There is uncertainty among the Membership regarding the direction of the Club…  I clearly understand that we are facing a time of transition and change.  In fact, there is no time that I would rather lead this club than now.  Out of change comes endless possibility and what I see when I look at this Club is the possibility that it can be GREAT….  I believe that it is possible to embrace everything that is great about youth hockey and reject all that is divisive and harmful… I believe that it is possible to create a culture that embraces core values like Integrity, Commitment, Effort, Loyalty, and Pride…  I believe that is is possible to have discipline and mutual respect on and off the ice… I believe that it is possible to focus the majority of our energy and resources on the KIDS… I believe that greatness means having the vision and perseverance to transform these possibilities into reality….

I am aware that some of you are considering other options for reasons as diverse as coaching and development to personality conflicts with the leadership of the Club.  I am asking you to take a step back and examine those reasons closely.  

If you believe that the Club’s mission should be to make better young men and women through the sport of hockey…  If you believe that every kid has greatness within them... If you believe that greatness is defined more by the accomplishments of a team or an organization than the individual…   If you believe that winning and doing it the right way is important… I am asking you to jump on board and give myself, the new Board, and this Club a chance to show you that together we can be GREAT. 

Looking forward to a GREAT 2013-14 season together,

RJ

Emphasis added. It is brutal to have to acknowledge the difficult position the Leafs find themselves in, and I credit RJ for tackling it head on. Speaking of the new Board, here it is:

President:                   RJ Grewal
VP Marketing:            Jeri Ketzner
VP Membership:         Jeff Cesarone
VP Finance:                Steve Goluch
Ice Scheduler:             Lee Gregory
Secretary/Registrar:     Kari Michalek  

Those departing the board include: Danielle Gulli, Tim Tighe, Paul Letto, and Ed Mchale.

So what is this going to cost YOU this year?  It looks like fees are up about $500 for this upcoming season when compared to the numbers in the Hockey Club Fee Database I completed three years ago. That is BEFORE participation and raffle requirements, which not every club requires. Keep in mind that most clubs haven't increased their fees over this same time frame due to the massive growth in youth hockey fueled by the success of the Blackhawks. More players = more fees. This growth coupled with greater utilization of half ice practices has enabled many clubs to hold the line on fees. At the request of a reader, I plan on updating the database this fall to prove this out. However, this increase is consistent with the experience of another club with a rink that went through foreclosure ... the Huskies.

Unfortunately the families of the Leafs and the Huskies will continue to pay for many years to come for the flawed decision making process that led to the construction of enormous three pad rinks during the real estate boom.

We here at the CAYH blog want to see hockey grow, and to that end we wish the new leadership at the Leafs all the best at pulling through these trying times.




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