Performance Sports Group filed with the U.S. Bankruptcy Court a Modified Joint Chapter 11 Plan of Liquidation and related revised Disclosure Statement.
According to the Disclosure Statement, “The Global Settlement provides for, among other things: (a) the Payment in Full of all Allowed General Unsecured Claims without Post-Petition Interests; (b) the resolution of all disputes regarding the treatment of Intercompany Claims and Equity Interests; (c) the resolution of all disputes regarding allocation of value among the Debtors and the allocation of the Sale Proceeds; and (d) the resolution of all disputes regarding substantive consolidation of the Debtors. The Monitor is prepared to recommend approving the Global Settlement in the CCAA Proceedings….This Disclosure Statement and the Plan constitute a motion requesting that the Bankruptcy Court approve the Global Settlement provided for in the Plan.”
In addition, “The Global Settlement resolves all disputes about the treatment of Intercompany Claims and Equity Interests. Prior to the Petition Date, the Debtors engaged in numerous intercompany transactions including: (a) intercompany trade transactions; and (b) intercompany debt transactions. More specifically, in the ordinary course of business, the Debtors regularly participated in ordinary course trade transactions between and among each other (the ‘Intercompany Trade Transactions’). The Intercompany Trade Transactions involved either shared services performed by one Debtor for the benefit of another which were billed on a ‘cost plus’ basis using transfer pricing, or goods which were sold from one Debtor to another using ‘cost plus’ transfer pricing. In the case of the Debtors’ non-U.S. and non-Canadian subsidiaries (the ‘Foreign Affiliates’), the Intercompany Trade Transactions were made between the Foreign Affiliates and Bauer Hockey Corp. (as ‘Bauer Canada’ and which has since been amalgamated with Old PSG Wind-down, f/k/a Performance Sports Group, through the Corporate Restructuring). Bauer Canada sold its branded product globally through Bauer Hockey AB and Bauer Hockey GmbH, both of which acted as sales and marketing service providers by facilitating the sale of Bauer product to customers throughout Europe.”
Read more PSG bankruptcy news.
The post Performance Sports Group Bankruptcy Plan Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.