Sharks won't void Kane's contract amid his bankruptcy filing
The San Jose Sharks won't void Evander Kane's contract as the forward navigates through filing for bankruptcy in federal court, a team spokesperson confirmed to The Athletic's Daniel Kaplan and Kevin Kurz.
"The Sharks are 100 percent committed to honoring Evander Kane's contract and have no intention of having it terminated," the spokesperson said.
The initial report Wednesday said Kane and the Sharks filed a motion this week and included their desire to "extend time to assume or reject" the remainder of a seven-year, $49-million pact the left-winger inked with the Sharks in May 2018.
The original deadline for voiding the contract recently passed, but a bankruptcy judge agreed to postpone it until June 7.
The 29-year-old filed for Chapter 7 bankruptcy in January, citing $26.8 million in debt and $10.2 million in assets. There is $29 million remaining on Kane's pact with the Sharks.
"Several creditors, including Zions Bancorp, filed recently, asking the court, Professional Bank, and South River Capital to convert the bankruptcy from Chapter 7 to 11, which is typically used for businesses," Kaplan and Kurz wrote.
"The change would be significant because, under Chapter 11, the $29 million cited by the lenders as remaining on Kane’s contract would be available to creditors like Zions, which is owed $4.25 million. It would not be under Chapter 7, according to Zions, which argues Kane’s losses are business-related."
A hearing to determine the designation will take place later in March. Kane and the Sharks would reportedly be more interested in canceling the contract if a judge converts the case to Chapter 11.
If the deal remains under Chapter 7, the player and team would have until the June extension deadline to decide on the contract's status based on the judge's ruling.