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Due to precautions related to COVID-19, we have expanded our options for remote consultations. Please contact our office to discuss whether a full phone consultation or video conference is appropriate for your situation. We can still accommodate in person meetings as well, while being mindful of social distancing guidelines.

Due to precautions related to COVID-19, we have expanded our options for remote consultations. Please contact our office to discuss whether a full phone consultation or video conference is appropriate for your situation. We can still accommodate in person meetings as well, while being mindful of social distancing guidelines.

Sports company headed into Chapter 11 bankruptcy with bidder

| Nov 3, 2016 | Chapter 11 |

When a company gets into financial trouble, it has a few options. One of the options is to pursue a Chapter 11 bankruptcy. This kind of bankruptcy provides a company with time to renegotiate costs and to work out payments so that it can re-emerge functional and in profit. If the company can’t do this, it could be sold off.

In a news report from Oct. 31, it’s been reported that a former chairman of Performance Sports Group Ltd., is talking to a number of Canadian and U.S. private equity firms about bidding on the company. The company currently makes Bauer ice hockey supplies and has filed for bankruptcy protection in both the United States and Canada.

The company is attempting to restructure and plans to sell most of its assets. The auction, which will be held in January, has led to interest. The former chairman may bid on the company. A former chairman of the company who had criticized the management team when he stepped down in 2012, and he is now considering his options moving forward.

The company may file for bankruptcy with a buyer in hand. The people bidding on it already are considered “stalking horse” bidders, and higher bids will be taken. The initial bids set a basic price that starts the auction. Before the company can be sold, a judge in the United States will have to approve it.

What’s fortunate is that the company does expect its operations to continue throughout the bankruptcy process, because existing lenders and investors have provided financing to keep it running. If your company runs into this kind of situation, a Chapter 11 bankruptcy is one option to consider, although not all companies that enter it have to sell.

Source: New Hampshire Union Leader, “Ex-chairman eyes bid for bankruptcy-hit Performance Sports,” John Tilak and Matt Scuffham, Oct. 31, 2016

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