Bankruptcy could cost Kings minority owner stake in team
Real-estate developer Bob Cook has been a part-owner of the Kings since the eighties. But his minority stake could be in jeopardy due to the burden of financial debt. From Dale Kasler of the Sacramento Bee:
Cook’s financial troubles stem from the construction of Le Rivage, the upscale hotel he opened on the Sacramento River in 2008. The hotel defaulted on its debt last year, and Cook filed for Chapter 11 personal bankruptcy protection in August.
Ramping up the financial pressure, one of his creditors is trying to drag into Bankruptcy Court the partnership through which Cook holds his Kings ownership stake.
“We’re just trying to get repaid,” said the creditor, Martin Boone, managing member of a Capitola firm called Omni Financial. He declined to comment further.
Cook put up his Kings stake as security when he borrowed $10 million from Omni four years ago, according to court records. He defaulted on the debt, which now totals $13 million.
Kasler also adds that Cook’s 7-percent share is exempt from any bankruptcy proceedings. Paperwork from the bankruptcy actually surfaced about 10 days ago.