Latest On Madoff Lawsuit: Cuomo To Mediate, Junk Bond Rating
A federal bankruptcy judge in Manhattan appointed former New York Gov. Mario Cuomo on Thursday to serve as a mediator in the legal dispute between the Mets owners and the court-appointed trustee trying to recover money for victims of Madoff’s Ponzi scheme.
According to the NY Times, the trustee, Irving H. Picard, has accused Mets owners Fred Wilpon and Saul Katz, chief operating officer Jeff Wilpon and affiliated Sterling Equities entities of making $300 million in fictitious profits from Madoff’s swindle and ignoring warnings that Madoff’s returns were implausible.
The Wilpons and Katz have denied wrongdoing, saying they are among Madoff’s victims.
“The court has ordered the parties to engage in mediation. We have nothing further to say at this time,” Sterling Equities said in a statement.
According to Reuters, Moody’s offered an unfavorable assessment of the bonds the Mets used to pay for the construction of Citi Field.
“While the ultimate outcome of the litigation and the timeframe for final resolution are unknown at the present time, the negative outlook acknowledges the close connection between the health and performance of the Mets baseball team and the long-term credit quality of the stadium project,” Moody’s said.
A Moody’s spokesman said the revised outlook affects $695 million of debt, which is rated Ba1, Moody’s highest junk grade.
Reuters adds that the Mets have had two straight losing seasons, although the team has one of the highest payrolls in Major League Baseball. Attendance fell 19 percent last year at Citi Field in the ballpark’s second year of existence.
About the Author: Rob Johnson
4 Comments + Add Comment
- Metsie: on Mets Need More Time To Get Better Understanding Of Ike Davis?: If the answer to every player's struggles...
- Hotstreak: on Mets Need More Time To Get Better Understanding Of Ike Davis?: Its no longer a rescue its now...
- XtreemIcon: on Logan Verrett Talks About His Road To The Show With MMO: In Jack's last 8.2 IP, he's walked...
- Metsie: on Sandy Disappointed With Some Of His Moves And The Team’s Performance: Dooby you keep saying PAYROLL RESET.... But why...
- Metsie: on Sandy Disappointed With Some Of His Moves And The Team’s Performance: Thats why I keep trying to get...
MMO Mets Chat
Check Out These Great MLB Links!
Mets Autograph Signings
Mets Fan Apparel
Mets Autographed Baseballs
Baseball Card Supplies
For the best seats and lowest MLB ticket prices, go to PurchaseSeats.com. Get your Mets Tickets now and follow them on the road with Yankees Tickets, Phillies Tickets, Nationals Tickets and Braves Tickets!