Sealing the deal

Melnyk close to completing purchase of the Senators

OTTAWA (Ticker) -- Billionaire Eugene Melnyk's bid to purchase the Ottawa Senators got a boost Monday when his Capital Sports Properties reached agreement to buy the Corel Centre.

Financial terms were not disclosed by Ernst & Young Inc, the firm appointed by a bankruptcy court to mange the affairs of the Senators. The deal includes all financial assets of the Palladium Corporation.

"This purchase reaffirms my commitment to keep the Ottawa Senators anchored in the nation's capital," Melnyk said in a statement released by the team. "The Corel Centre can compete with other arena venues around the world and I look forward to leveraging its benefits to attract a variety of international sporting and entertainment opportunities."

Capital Sports & Entertainment Inc., another company owned by Melnyk, received court approval May 9 to purchase the cash-strapped Senators. That approval was contingent on his ability to buy the 18,500-seat Corel Centre.

Melnyk hopes to seek court approval for his purchase of the arena within a week. Thirty days later, he will be able to finalize the Corel Centre transaction and his purchase of the team.

The acquisition of the Senators also must be approved by the NHL Board of Governors.

The team sought bankruptcy protection in Canada and the United States after missing a payroll just before New Year's Day. Rod Bryden tried unsuccessfully to retain ownership of the Senators before Melnyk emerged as a buyer.

Melnyk is chairman and CEO of Biovail Corporation, a pharmaceutical company based in Mississauga, Ontario.

 

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