Under US bankruptcy code, Grand Slam Track can't pay athletes (or anyone for that matter) a higher percentage of what they're owed than other vendors if they paid the athletes (or other vendors) within 90 days of filing for bankruptcy.
So if say the athletes got 50% on the dollar and vendors only are set to get 35%, athletes could be forced to pay 15% back. But this only happens if the bankruptcy happens within 90 days of the athletes getting paid.
Looks like athletes were paid around Oct 1, so that would push the 90 days till end of year. Other creditors could force an involuntary bankruptcy before then if they want to make sure they are treated the same as athletes, but that presumably costs legal fees.
Curious to hear thoughts of lawyers or execs who have gone through a bankruptcy.
Is this likely to happen or just more of a sensationalist article.

