Advertisement

Golfsmith International Holdings Procedures Approved

Advertisement

The U.S. Bankruptcy Court approved Golfsmith International Holdings’ a motion for entry of an order (i)(a) approving bidding procedures for the sale of substantially all of the Debtors’ assets; (b) scheduling an auction for and hearing to approve the sale of the Debtors’ assets and (ii)(a) approving the sale of substantially all of the Debtors’ assets free and clear of liens, claims, interests and encumbrances.

As previously reported, “The Debtors seek to maximize the value of their estates for the benefit of their creditors by conducting an auction for the sale of substantially all of their assets….In addition, holders of approximately 40% of the Company’s Senior Secured Notes have signed a restructuring support agreement for a chapter 11 plan of reorganization for the Debtors. The Debtors have therefore commenced these chapter 11 cases to implement either a sale of the U.S. business or assets in an auction process (the ‘Sale Process’), or a restructuring through a chapter 11 plan process, to ensure the highest and best recovery for their stakeholders.”

Court-filed documents continue, “The Debtors believe this schedule is reasonable and appropriate for two reasons. First, the Company and Jefferies spent over two months prior to the commencement of these chapter 11 cases marketing their U.S. and Canadian businesses to 214 potential strategic and financial buyers. The Company has already identified a purchaser for Golf Town, and has received expressions of interest and bids for Golfsmith….Second, a critical juncture for the Debtors’ business commences in early November: the Debtors will need to both order a significant amount of new inventory for their stores in advance of the end-of-year holiday season, and to start to prepare their stores to execute their holiday season sales strategy. Approving a sale of the Debtors’ assets to a going concern bidder before November will allow the Debtors’ significant cash needs to be funded by a new owner.”

An auction is scheduled for October 19, 2016 and a hearing to consider approval of the sale will be held on October 31, 2016, with objections due by October 21, 2016. The deadline for submitting qualified bids is October 17, 2016.

Read more Golfsmith bankruptcy news.