According to both Forbes and the Globe & Mail, creditors of the New Jersey Devils and the Prudential Center are desperately trying to sell the team's debt at a discount, which the Globe & Mail places at 75 cents on the dollar.
Both publications report that owner Jeff Vanderbeek missed a principal payment on a loan in early September. This was also reported by the New York Post at that time, which also floated the idea that lenders would help force the team into bankruptcy. The Devils, in a statement, called that notion "patently untrue."
And yet ... here we are.
From Mike Ozanian at Forbes, the current state of the Devils' debt:
I can tell you the Devils have over $250 million of debt piled on the team and arena, which they control. The debt is growing because Vanderbeek, unable to make interest payments, is capitalizing the interest. If this all sounds familiar it is because it should. This is what Hicks Sports Group went through when its $525 million of debt, stacked o...