July 25, 2018 – The Rockport Company has requested Court approval of a settlement reached by (a) the Debtors, (b) adidas AG (“Adidas”) and (c) certain noteholders, DIP note purchasers and existing or former equity holders (“the Noteholder Parties”) [Docket No. 402]. The settlement agreement notes, “The material terms of the Settlement Agreement are as follows: At the closing of the Sale (the ‘Closing’), the Debtors will pay or cause to be paid a sum of $8,000,000 to Adidas (the ‘Settlement Payment’) from the proceeds of the Sale….The Settlement Agreement satisfies approximately $54,000,000 in asserted claims against the Rockport Parties and allows the Sale to close.”
As previously reported, “After reviewing and carefully considering the Bids received from the 4 Interested Parties, the Debtors determined, in consultation with their advisors, that CB Marathon Opco…had submitted the highest or otherwise best offer (the ‘Charlesbank Bid’), pursuant to which the Stalking Horse Bidder agreed to acquire substantially all of the Debtors’ Assets (other than the North American Retail Assets) for a purchase price of (i) $150 million in cash (the ‘Base Cash Amount’) subject to certain working capital adjustments plus the NAM Store Inventory Amount (the ‘Initial Cash Consideration’); (ii) a warrant to purchase up to 5% of common equity of the indirect parent of the Stalking Horse Bidder once the Stalking Horse Bidder receives a return equal to 2.5 times its initial equity investment as of the Closing Date (the ‘Warrant’); and (iii) the assumption of certain liabilities.” The Court scheduled a July 30, 2018 hearing to consider the settlement agreement with objections due by July 29, 2018.
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