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Tuesday, August 09, 2011

David Einhorn restructures deal and is close to officially becoming the Mets Limited Partner

According to the NY Post, Einhorn has restructured his $200 million investment in the Mets, and in doing so, erased opposition from the team's bank lenders.

The bank lending syndicate of the money-losing team, led by JPMorgan Chase, balked at the original terms because it put Einhorn on the repayment line in front of them. Their loans are due in June 2014.

The report says that the deal could close by the end of the month. Under the new deal, half of Einhorn's money will go towards repaying a loan from Major League Baseball and paying down bank debt, while the other half will go towards team operations.

Also  he'll now get a 17 percent stake, as opposed to a 33 percent stake, and he'll also reportedly become a limited partner. The Wilpons would now have five years (instead of three) to pay back his $200 million. If they do, he retains his 17 percent stake; if they don't, he'll still be able to buy a majory stake for a token amount. (Previous reports said that the token amount was $1.)

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