New Delaware Chapter 11 Filing- Performance Sports Group Ltd.
Performance Sports Group Ltd. (NYSE: PSG) – the leading developer and manufacturer of hockey, baseball, softball, and lacrosse equipment, and 17 of its affiliates have filed petitions for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Case No. 16-12373). The petition lists between $500 million and $1 billion in both assets and liabilities. According to the Petition and the Debtors’ Sale Motion, the Debtors entered into an Asset Purchase Agreement with the Stalking Horse Purchaser, an acquisition vehicle controlled by a group of investors led by Sagard Capital Partners, L.P. and Fairfax Financial Holdings Limited pursuant to which the Stalking Horse Purchaser will purchase the Company for $575 million. According to the first day declaration and the Debtors’ DIP Motion, the Stalking Horse Purchaser and the pre-petition ABL Lenders agreed to provide DIP financing. In addition to these chapter 11 cases, Performance Sports Group has commenced proceedings in Canada under the Companies’ Creditors Arrangement Act in the Ontario Superior Court of Justice. More information can be found in a press release issued by Performance Sports Group Ltd. The Debtors seek joint administration of these cases. The cases have been assigned to the Honorable Kevin J. Carey. Prime Clerk LLC is the proposed claims agent.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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