Lenny Dykstra No Longer In Charge Of His Own Destiny

by Deidre Woollard (RSS feed)
Sep 2nd 2009 at 10:01PM

You've got to hand it to Lenny Dykstra, the former baseball player is a fighter. But Dykstra lost a major battle this week when a bankruptcy judge ruled that he lose control of his Chapter 11 bankruptcy and turn over management of his financial affairs to a court-appointed trustee.

Judge Geraldine Mund had told Dykstra last month that if he wanted to be in charge of his own reorg he had to come to court showing that both of his homes were insured and listed for sale and to provide a business plan showing how he would manage his Chapter 11 reorganization. Dyktstra's home in Thousand Oaks, California is not insured because he is still battling with Fireman's Fund. Dykstra said he has a $12 million offer for the home, which he bought from Wayne Gretzky, from someone who "runs a hedge fund." He had no proof to this effect. He also said that Louis Vuitton had promised $10 million for a 49 percent stake in relaunching his Players Club magazine and expanding it in Europe. The only evidence he had was an email signed Bernard referring to Bernard Vuitton Juhen. Bernard Arnault is the chairman of Louis Vuitton Moet Hennessy. Bernard Vuitton Juhen appears to be a Vuitton family member. The email gave no specifics as to when or if $10 million would be paid although Dykstra said he'd get the money when the magazine published. How he would raise the money to publish in the first place wasn't clear. Judge Mund decided that an outside trustee is in "the interest of creditors and Mr. Dykstra, even if he doesn't think so."

Tags: bankruptcy, chapter 11, Chapter11, lenny dykstra, LennyDykstra