Billionaire Default

Turns out none of us are immune from the treacherous economy. Even Dallas billionaire financier Tom Hicks’s holding company has defaulted on $525 million in loans.

Hicks Sports Group, which owns the Texas Rangers and the Dallas Stars, defaulted on a $350 million bank term loan, a $100 million second-lien loan and a $75 million revolving credit facility, FINalternatives said.

Hicks who made his billions in leveraged buyouts (LBO) Hicks, Muse, Tate & Furst (now HM Capital Partners), is now losing it at the peril of excess leverage.

The Hicks group is now seeking some leeway in talks with its lenders. “We’re optimistic that a satisfactory resolution will come together in the next couple of weeks with our lenders’ cooperation,” Hicks said by phone Friday morning. “The important thing is that none of this impacts either team or the fan experience at either venue. We’re prepared to fund the operations of both clubs for the next 12 months while we continue to seek additional investors.”

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