Judge rejects Balsillie bid to buy Phoenix Coyotes

Jim Balsillie's bid to purchase the Phoenix Coyotes and relocate the NHL team in Hamilton was rejected Monday by a U.S. bankruptcy judge.

Coyotes majority owner Jerry Moyes filed for Chapter 11 bankruptcy protection on May 5 — a move intended to facilitate the sale of the franchise to Balsillie for $212.5 million US, but on the condition he could relocate the team to Hamilton.

But the NHL was committed to trying to keep the team in Glendale, Ariz., and challenged Moyes's legal authority to file for Chapter 11 protection, arguing it had assumed control of the franchise and removed him as majority owner.

Judge Redfield T. Baum, who presided over the bankruptcy hearing, ordered mediation between Moyes and the NHL to determine who is in control of the team, and heard arguments from both sides before rendering his ruling.