The U.S. Bankruptcy Court approved a stipulation by and between Performance Sports Group and 9938982 Canada and affiliates regarding the purchase price agreement escrow.
As previously reported, “In connection with its entry into the Asset Purchase Agreement, Purchaser deposited on its behalf an aggregate amount equal to $28,750,000 in cash as a ‘good faith deposit’ by wire transfer of immediately available funds to Citibank, (the ‘Deposit Escrow Agent’), to be held in escrow in accordance with the terms of the escrow agreement (the ‘Deposit Escrow Agreement’) entered into on October 31, 2016 between and among Purchaser, the Debtors and Deposit Escrow Agent….Pursuant to the Third Amendment, the Debtors and Purchaser instructed the Deposit Escrow Agent to retain $12,008,073 of the Deposit (the ‘Capital Lease Escrow Amount’) until such time as the Capitalized Lease Issue was adjudicated by the Courts or consensually addressed by the Debtors and Purchaser pursuant to a settlement approved by the Courts.”
In addition, “The Sale closed on February 28, 2017. The Debtors and the Purchaser have entered into a stipulation pursuant to which the Debtors and Purchaser shall receive $8,000,000 and $4,008,073 respectively, in each case subject to any deduction of escrow fees and expenses, from the Capital Lease Escrow Amount in full and final settlement and resolution of the Capitalized Lease Issue.”
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