Otters owner Bassin files for bankruptcy

The Erie Otters claimed Wednesday that a messy bankruptcy case involving an NHL team will not affect a second-round OHL playoff series between Erie and London that features some of the best junior players in the world.

With junior superstars Max Domi, Connor McDavid, and Dylan Strome squaring off in Game 1 Thursday, Otters owner Sherry Bassin filed for bankruptcy to help protect the teamduring its legal battle with Edmonton Oiler owner Daryl Katz.

According to previous reports and court records, Katz is said to have made $4.6 million in loans to the Otters as part of a collapsed deal to purchase the team.

The Oilers’ attempt to sue the Otters was dismissed in a U.S federal court in December, but the Otters claim the Oilers are trying to sell the assets of the junior team under commercial law guidelines in Pennsylvania.

The Oilers have established a subsidiary company — the Ontario Major Junior Hockey Corp. — to conduct a private sale of the Otters’ assets, prompting Bassin to protect his team through bankruptcy and buy time to find a new buyer.

“This will have absolutely no effect on Otters playoff games, on our staff, on our players, or any of our hockey or business operations,” Bassin said in a statement.

“The Erie Otters Hockey Club has a strong and fundamentally sound underlying business. The team, the Ontario Hockey League and our corporate partners will be fully protected during this process.

“(Wednesday’s) filing provides us with the opportunity to continue to execute our business plan on a stronger footing, maintain normal operations of the hockey club as it fights toward an OHL championship, and smoothly continue the ongoing sale process.”

The Otters’ financial issues stem from the 2011-12 season, a period prior to McDavid’s rise to stardom, when they averaged fewer than 3,000 fans. Attendance has obviously risen with McDavid and Strome, both of whom are expected to go in the top five in the NHL draft. Mark Zwolinski