Comcast, the nation’s largest cable provider, has forced Houston Regional Sports Networks LP into Chapter 11 bankruptcy, according to a February 11, 2014 Bloomberg News article. The local network televises the Astros’ baseball games. A creditor can force a debtor into bankruptcy into Chapter 7 or Chapter 11 under very specific circumstances governed by 11 U.S. Code Sec. 303. Comcast owns a 22% stake in the company and claims that the network owes them $100 million.

Usually, the agreements between a sports team and a television network can be very profitable for the sports team. In fact, another Bloomberg article cited that the Los Angeles Dodgers will receive more than $7 billion for 25 years of broadcast rights. The Astros claim that their deal is not profitable and, as a result, they want to halt the bankruptcy because the bankruptcy does not allow them to renegotiate the contract. The bankruptcy judge, however, stated that he thinks that the network can be profitable. The network plans to appeal their case, but even the current judge says they are likely to get what they want in District Court. It is said that Comcast may want to buy the network. Therefore, they would have a very large interest in ensuring its survival.

Jayson Lutzky is a Bronx, New York lawyer who handles personal bankruptcy cases. He offers free in office consultations, so if you would like to learn more about bankruptcy or find out if you would qualify to file for bankrutpcy, set up an appointment by calling 718-514-6619. You may also visit Mr. Lutzky’s website, www.MyNewYorkCityLawyer.com for more news and information.