He said it was a possibility, and he was true to his word, Judge T. Baum turns down both the NHL`s and Balsillie`s bids for the Phoenix Coyotes. On the Balsillie side of things:
Judge Baum threw out the bid by Balsillie, saying it could not work because he could not properly satisfy the NHL’s rights regarding relocation. “In the final analysis, the court cannot find or conclude that the interests of the NHL can be adequately protected if the Coyotes are moved to Hamilton without first having a final decision regarding the claimed rights of the NHL and the claims of the debtors and (Balsillie),” he ruled.
It sounds like the door was left open for the NHL to adjust thier bid if they would pay `all` creditors.
He then ruled that the NHL’s bid would not work because it allows the league to specifically select the creditors will be paid. The NHL said it would pay all their creditors in full – with the exception of former head coach Wayne Gretzky and majority owner Jerry Moyes.
Official Statement from Judge Redfield T. Baum