It was reported yesterday afternoon that alongside RedBird and his ex-wife Dany Garcia, The Rock had purchased the XFL, following its bankruptcy earlier this year, for $15million.
The news was later confirmed by the XFL on Twitter and even The Rock himself, with the former WWE Champion and Hollywood megastar tweeting the following about his new business venture:
With my trail blazing partner @DanyGarciaC & Red Bird Capital, we have acquired the XFL. With gratitude & passion I’ve built a career with my own two hands and will apply these callouses to our @xfl2020 brand. Excited to create something special for the fans! #XFL #fullcircle
However, The Official Committee of Unsecured Creditors for Alpha Entertainment, the XFL’s parent company, has filed a motion to prevent the purchase of the XFL by Alpha Acquico LLC, meaning the deal might not be smooth sailing.
PWInsider is reporting that, in simple terms, creditors are worried that the XFL’s assets are being sold to Alpha Acquico LLC for less than they are actually worth:
The Official Committee of Unsecured Creditors for Alpha Entertainment, the parent company of the XFL, filed a motion this afternoon seeking to stop the sale of the XFL’s assets to Alpha Acquico LLC, the group led by Dwayne “The Rock” Johnson, which was announced this morning.
As PWInsider.com reported earlier today, The XFL purchase for Alpha Acquico, for $15 million, brings them all of the XFL assets. They also agreed to take on “certain specified liabilities” and finance $8.5 million towards any payments that are needed to cure previous financial defaults from the old owner.
However, in a 13-page motion filed this afternoon the XFL’s unsecured creditors asked the court to pause the sale citing that Alpha Entertainment, “has an ongoing obligation to negotiate terms with the Proposed Buyer that are most favorable to the estate and do not unduly prejudice its creditors. The proposed APA, however, does not reflect such terms and seeks to strip the estate of valuable assets for no consideration. As such, the Committee has significant concerns that the Sale contemplated with the Proposed Buyer does not satisfy the sound business purpose test, and is not in the best interests of the Debtor’s estate.”
The Rock, Dany Garcia and RedBird’s purchase of the XFL is dependent on the approval of the bankruptcy court, with a hearing set to take place later this week. If all conditions are met, the sale should be completed by August 21.
For more on this developing story, make sure you stay tuned to WrestleTalk.com.