Friday, August 14, 2015

Forest City gets deadline extended to Sept. 8 to pay $31M+ to Prokhorov (or sell their share of Nets)

As I wrote August 6, Forest City Enterprises officials, in a conference call with investment analysts, did not specify how they'd resolve an August 12 deadline: they'd either pay Mikhail Prokhorov’s Onexim Sports & Entertainment (which owns the 80% of the Brooklyn Nets and 45% of the Barclays Center arena) fees greater than $31 million to make up for missing past capital calls, or see their its 20% share of the Nets diluted to 8%.

Instead, unsurprisingly, they kicked the can down the road.

As noted by the Real Deal (also see tweet by Bloomberg reporter Scott Soshnick), the deadline has been extended until Sept. 8, giving more time for Nets Sports & Entertainment (majority owned by Forest City) to sell or trade its shares of the team and the arena.

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