Report: OHL's Erie Otters file for bankruptcy

Connor McDavid's team is reportedly in deep financial trouble.

The Ontario Hockey League's Erie Otters have filed for bankruptcy, according to a report by Ed Palattella of the Erie Times-News.

The junior club, which also boasts NHL draft prospect Dylan Strome, filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court in Erie.

The Otters have been fighting an attempt by the Edmonton Oilers to force a sale of the OHL team. The Oilers claim to have issued $4.6 million in loans to the Otters in exchange for a deal to buy the OHL franchise from owner Sherry Bassin.

Bassin said the Otters are still for sale and continue to look for buyers. They plan to use the bankruptcy filing to pay the team's creditors. 

The owner said the following in a statement:

"This will have absolutely no effect on Otters playoff games, on our staff, on our players, or any of our hockey or business operations. 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.

Today'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. All of our efforts are focused on concluding this process in an efficient and successful manner."

The Otters begin their second-round playoff series against the London Knights on Thursday after dispatching the Sarnia Sting in five games.

Erie finished second in the OHL's Western Conference with 104 points and a record of 50-14-2-2. They entered the playoffs on a 10-game win streak.