Golf Co. Approved For $35.7M Ch. 11 Sale To Nicklaus Family
A Delaware federal bankruptcy judge approved a $35.7 million sale of assets Monday in the Chapter 11 case of sports gear and golf course design enterprise Nicklaus Cos. LLC, agreeing to a deal that will see affiliates tied to retired golfer Jack Nicklaus acquire the business and end protracted litigation among its founders.
During a hybrid hearing in Wilmington, debtor attorney David J. Cohen of Weil Gotshal & Manges LLP told the court the transaction will resolve ongoing disputes between Nicklaus and former debtor Chairman Howard Milstein over defamation claims lodged by Nicklaus in Florida and a fight over rights to Nicklaus’ name, image and likeness used by the company.
“Really what this does is resolve over 10 years of disputes that have been festering among the company, Mr. Nicklaus and Mr. Milstein, reunites the company and its trademarks and other intellectual property with Mr. Nicklaus’ family, and preserves the brand,” Cohen said.
The global settlement embodied by the sale agreement includes provisions that will see the buyer — 20 Majors LLC — assume certain obligations of the company. Also, Nicklaus will waive certain claims against the estate; and Milstein will waive a significant portion of his pre-petition claims, Cohen said.
Importantly, the parties have also agreed to cease all litigation among themselves, including an appeal of the $50 million defamation judgment awarded in favor of Nicklaus in Florida state court.
G. David Dean of Cole Schotz PC, representing Nicklaus, said the deal resulted from the time afforded to the parties to negotiate a resolution after so many years of court battles.
“This sale marks the start of a new day for the company but also an end of four years of litigation between Mr. Nicklaus and Mr. Milstein, a result I think everyone is happy to see,” Dean said. “This sale process achieved global peace in a way that only the bankruptcy could. It brought the parties together in a manner that facilitated what we all believe is a win-win.”
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