Performance Sports Group’s First Amended Joint Chapter 11 Plan of Liquidation became effective, and the Company emerged from Chapter 11 protection. The Court confirmed the Plan on December 20, 2017.
According to documents filed with the Court, “Although referred to as a ‘joint’ plan, the Plan comprises 18 separate Plans (one for each of the Debtors’ Chapter 11 Cases)….The Plan rests on two settlements (collectively, the ‘Plan Settlements’): (1) the Global Settlement of all disputes among the Debtors, the Creditors’ Committee and the Equity Committee, a settlement that the Monitor is prepared to recommend to the Canadian Court for approval; and (2) the Class Settlement among the Lead Plaintiff, the Equity Committee and the Debtors that resolves the objections to the Securities Claims, the Lead Plaintiff’s potential Plan objections, and the Lead Plaintiff’s cross motion for application of Bankruptcy Rule 7023 to the Putative Class Claim (the ‘Rule 7023 Cross Motion’).”
In addition, “The Plan, along with the Plan Settlements, if confirmed, provides for the successful completion of the Debtors’ liquidation and distribution of approximately $40 million in remaining Sale Proceeds….Initial distribution of $1.15 million in Cash from the Sale Proceeds, and participation in recoveries from the Retained Causes of Action in an aggregate amount of up to $2.5 million.” This sports equipment manufacturer and retailer filed for Chapter 11 protection on October 31, 2016, listing $845 million in pre-petition assets.
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