Alpha Entertainment Inc., the former owner of the XFL, received court approval to wind down in bankruptcy after selling the football league to an investor group led by Dwayne “The Rock” Johnson.
General unsecured creditors, the only stakeholder group entitled to vote on the Chapter 11 liquidation plan, “voted overwhelmingly” in favor of it, Judge Laurie S. Silverstein of the U.S. Bankruptcy Court for the District of Delaware said before approving the plan at a telephonic hearing Friday.
Alpha proposed its bankruptcy plan after selling its assets for $15 million and repaying a $9 million loan from XFL founder Vince McMahon. The plan provides unsecured creditors with projected recoveries of up to 12% of allowed claims, which total between $38 million and $57 million.
The company filed for bankruptcy in April after cutting XFL’s 2020 season short in response to the coronavirus pandemic.
The case is In re Alpha Ent. LLC, Bankr. D. Del., No. 20-10940, hearing 12/11/20.