JPMorgan Chase & Co. (NYSE: JPM) will be suing the Major League Baseball team Texas Rangers for taking over the lease of its Arlington stadium, Rangers Ballpark, before filing for bankruptcy.
Bloomberg reported that JPMorgan Chase & Co. (NYSE: JPM) is the agent for investors that loaned money to Rangers owner Tom Hick’s company, HSG Sports Group. The report stated that the terms of the loan to HSG involved certain units and affiliates making payments to pay part of the loan if necessary. HSG was obliged to pay the full amount, but the Rangers were only liable for $75 million. Transferring the lease of the stadium from HSG to the Texas Rangers made it more difficult for lenders to recoup the $411 million owed.
JPMorgan Chase & Co. (NYSE: JPM) is asking a judge to declare the transfer as null and void because it violated the mortgage of the property. The lease on the stadium is collateral for the loan, according to court documents.
JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company. JPMorgan Chase’s principal bank subsidiaries are JPMorgan Chase Bank, National Association (JPMorgan Chase Bank, N.A.), a national banking association with United States branches in 23 states, and Chase Bank USA, National Association (Chase Bank USA, N.A.), a national banking association that is the Firm’s credit card-issuing bank. JPMorgan Chase’s principal nonbank subsidiary is J.P. Morgan Securities Inc. (JPMorgan Securities), its United States investment banking firm. Its activities are organized into six business segments: Investment Bank, Retail Financial Services (RFS), Card Services (CS), Commercial Banking (CB), Treasury & Securities Services (TSS) and Asset Management (AM). Its wholesale businesses comprise the Investment Bank, Commercial Banking, Treasury & Securities Services and Asset Management segments. Its consumer businesses comprise the Retail Financial Services and Card Services segments.
