Big surprise: Frank McCourt to keep the Dodgers running with a crappy loan

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Frank McCourt, who knows from crappy loans, received one for $150 million in order to meet payroll on the 30th and to keep the team running while the bankruptcy proceeds through its paces, reports the Wall Street Journal.  Some basic questions you may have, followed by the best answer I have (again, bankruptcy types, feel free to correct me if I’m wrong):

First question: How in the hell did Frank McCourt get a loan? I thought he was tapped out!

Answer: It’s a special bankruptcy loan for debtors in possession. These things happen frequently. The moment the bankruptcy goes down, the lender of such a beast goes to the front of the line for payment. It would not have been available before a filing, as a lender would then be behind all of the other creditors. The idea: better to favor a post-bankruptcy lender than to have no one get paid.

Second question: What makes this a crappy loan?

Answer: The interest rate for starters, which at 10% is higher than your usual debtor-in-possession financing. Even Borders bookstore, which is basically in a dying industry, got a better deal. Also the fact that McCourt had to pay the lender a $4.5 million fee on top of it all. Also because McCourt had to put a lien on Dodger Stadium and offer personal guarantees on the load too.

Third question: Why such bad terms?

Answer: Apparently because no one else would lend him the money, preferential treatment aside.  According to the Wall Street Journal, a J.P. Morgan-affiliated hedge fund — Highbridge Principal Strategies — was the only entity willing to do business with Mr. McCourt. Maybe next time he should call Moneytree, where lenders compete for your business!

What? You mean he called Moneytree already?  And they pretended they weren’t home?  Awwwkwaaard.

Autopsy report reveals morphine, Ambien in Roy Halladay’s system

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Traces of morphine, amphetamine, Prozac and Ambien were found in Roy Halladay’s system at the time of his death, according to the autopsy findings Zachary T. Sampson of the Tampa Bay Times reported Friday. The former Phillies and Blue Jays ace and two-time Cy Young Award winner was killed in a plane crash off the Gulf of Mexico last November. While the exact cause of the incident has not yet been determined, it was a combination of blunt force trauma and drowning that resulted in the 40-year-old’s death.

Further details from the NY Daily News revealed that Halladay sustained a fractured leg and a “subdural hemorrhage, multiple rib fractures, and lung, liver and spleen injuries” during the crash. As for the drugs present in his system, the autopsy report suggests that the presence of morphine could be linked to heroin use, though there’s no clear evidence that he did so.

The toxicology results also determined that Halladay had a blood-alcohol content level of 0.01. A BAC of 0.08 is the legal limit for operating a car, but current FAA regulations prohibit any alcohol consumption for eight hours before operating aircraft. Halladay was both the pilot and sole passenger aboard the plane when it crashed.

Previous statements from the National Transportation Safety Board indicate that the investigation is still ongoing and could take up to two years to resolve.