A private investor is considering a plan to finance $250 million of debt from the professional ice hockey team the New Jersey Devils, according to a report in the New York Post.
Triarc Companies chairman and CEO Nelson Peltz is behind the plan that would also reportedly include $50 million in equity in a purchase of the team in a prepackaged bankruptcy.
The plan is the second option being considered by the Newark, NJ team after it missed an October deadline to make a $80 million principal payment.
Lenders did not put the team in default and extended the deadline as a way to reach a restructuring deal with controlling owner Jeffrey Vanderbeek, according to the report.
Vanderbeek is reportedly working with Goldman Sachs on a plan to securitize the team's TV rights deal. If successful, the securitization will generate roughly $80 million. This enough, it is believed, to pay lenders and get the debt restructured. The deal, according to the report, is expected to be completed in January.
