Houston SportsNet Finance, LLC v. Houston Astros, LLC

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Comcast loaned the Network $100 million, secured by a lien on substantially all of the Network's tangible and intangible assets, including an Affiliation Agreement. Pursuant to the Agreement, a Comcast subsidiary agreed to pay the Network to carry the Network's content on its cable systems. The Network involuntarily entered into bankruptcy; Comcast elected to treat its entire claim as secured before a plan or reorganization was confirmed; and then the bankruptcy court conducted a valuation of the Network's assets, including the Agreement. The bankruptcy court concluded that the Agreement had no value and the district court affirmed. The Fifth Circuit held, however, that the district court did not consider the value of Comcast's collateral in light of the reality of the plan of reorganization and accordingly deducted waived Network liabilities from the Agreement's value. Accordingly, the court remanded for further proceedings. View "Houston SportsNet Finance, LLC v. Houston Astros, LLC" on Justia Law