The XFL's unsecured creditors are objecting to the proposed $15M sale to The Rock because it includes the assignment of all claims belonging to the XFL. There are over $61M in potentially voidable transfers, such as payments made to insiders (including $1.2M to Vince McMahon).
Other potentially voidable transfers include a $5M payment to Raine Advisors LLC during the preference period (90-day period prior to bankruptcy) to satisfy an obligation on which Vince McMahon was jointly liable. If the sale is approved, McMahon would be released from this debt.
"The Committee has identified substantial potential causes of action against insiders, including millions of dollars in payments made within the 1-year insider preference period, and questionable loan transactions within the days and weeks leading up to the bankruptcy."
"The prospect of insiders receiving releases is also troubling to the Committee where neither McMahon nor any other insider of the Debtor would come close to meeting the requirements in the Third Circuit to obtain a non-consensual release in connection with a chapter 11 plan."
XFL creditors insinuate that Dwayne "The Rock" Johnson may acting as a "shill" for Vince McMahon based upon the inclusion within the sale of all of the XFL's potential claims against insiders, which would include lawsuits to recover millions in voidable payments made to McMahon.
"While the Committee has no evidence to support that the Proposed Buyer is affiliated with McMahon or the WWE (other than certain well-known affiliations between a member of the Proposed Buyer and McMahon/WWE) . . ."
". . . the Proposed Buyer’s insistence that the Sale include the acquisition of insider claims raises significant concerns and questions about the connections or intentions of the Proposed Buyer vis-à-vis McMahon and the WWE."
The XFL's creditors point out that the claims belonging to the XFL "were expressly excluded" from the Purchased Assets in the form asset purchase agreement prepared by the Debtor," but are now "expressly included" in the proposed contract with Dwayne "The Rock" Johnson. 
With over $61M in potentially voidable transfers, the inclusion within the $15M sale to The Rock of all claims and causes of action belonging to the XFL raises questions about whether the transaction maximizes the value of the bankruptcy estate and unfairly prejudices creditors.
"The Court should not countenance a process that permits assets that could yield a significant recovery for the estate to slip away without being valued at all by the Debtor . . ."
"With a base purchase price of $15 million, if the value of the Purchased Claims, purchase price adjustments and Debtor payment obligations exceed $15 million, then the Debtor will in effect be getting no value for the sale of its assets."
"The Committee believes that claims may exist against the Debtor’s principal, Vincent McMahon, and other insiders. The Debtor admits that it has not performed an analysis of or valued such claims."
A worked shoot? #Kayfabe
A worked shoot? #Kayfabe
