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Performance Sports Group Sale Approved

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The U.S. Bankruptcy Court approved Performance Sports Group’s motion for the sale of property free and clear of liens, approving the asset purchase agreement (APA) with Saverio Michielli (Owner) and a corporation to be incorporated by Saverio Michielli (Buyer) for the assets of the Debtors’ soccer uniform business.

As previously reported, “The Debtors entered into an agreement (the ‘Stalking Horse Agreement’) for the going-concern sale of substantially all of the Debtors’ assets (the ‘Stalking Horse Sale’) to a group of investors led by Sagard Capital Partners (collectively, the ‘Stalking Horse Purchaser’), subject to a Court supervised auction process. Pursuant to the Stalking Horse Agreement, the Stalking Horse Purchaser has agreed to acquire substantially all of the Debtors’ assets for the base purchase price of U.S. $575 million, plus the assumption of related operating liabilities, and serve as a ‘stalking horse’ bidder in the Bankruptcy Proceedings (collectively, the ‘Stalking Horse Consideration’).”

In addition, “Pursuant to the Bid Procedures Order, the Court established a bid deadline of January 25, 2017, scheduled an auction on January 30, 2017, and scheduled a hearing on February 6, 2017 to consider the Sale….Relative to a liquidation, the opportunity to sell the soccer business assets for approximately CDN$2.1 million – a sale premised on minimal transaction costs and an expedited process – offered significantly more value to the Debtors’ estates than liquidation….The Buyer will pay the Debtors a purchase price (the ‘Purchase Price’) of CDN$2,071,161.46 in full at Closing.”

Read more PSG bankruptcy news.