NASHVILLE, TN (CelebrityAccess MediaWire) — William "Boots" Del Biaggio III, a financier and major stakeholder in the NHL team, The Nashville Predators ,has filed for chapter 11 bankruptcy protection on June 6th after an investment firm filed a lawsuit against him alleging fraud.
According to the San Jose Business Journal the lawsuit, brought by DGB Investments names Del Biaggio San Francisco investment bank Merriman, Curhan, Ford & Co., and Scott Cacchione, a Merriman managing director. The suit alleges that the a Del Biaggio and his associates fraudulently misrepresented assets being used as collateral to secure a $3 million loan.
DBG isn't the only creditor to bring suit against Boots. Modern Bank of New York has brought suit seeking $10 million and contending that similar fraudulent representations about collateral took place. Craig Leipold, the man who sold the Predators to Del Biaggio in the first place has hopped on the litigation bandwagon as well, claiming that he's still owed $10 million.
Among the creditors listed in the bankruptcy filings were AEG Facilities which claims to be owed $7 million. AEG owns and operates an arena in Kansas City that Del Biaggio had been looking to move the financially struggling team to. The deal was not completed however and the reason that Del Biaggio owes this money to AEG is not entirely clear.
Del Biaggio also made a last minute stab at selling the Predators to Canadian billionaire and Blackberry impresario Jim Balsillie in May, but the NHL nixxed the proposed deal after Balsillie made apparent that he hoped to move the Preds to Canada.
Del Biaggio's investment fund, Sand Hill Capital Partners III has also filed for bankruptcy protection, listing assets of $100,000 against $10.6 million on debts. Del Biaggio has subsequently stepped down from his position as a partner at the fund, citing personal reasons. – CelebrityAccess Staff Writers