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Performance Sports Group Sale Approved

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The U.S. Bankruptcy Court issued an order approving Performance Sports Group’s motion for an order establishing bid procedures for the sale of all or substantially all of the Debtors’ assets; approving bid protections; approving form and manner of the sale, cure and other notices and scheduling an auction and hearing to consider approval of the sale and an order approving the sale of the Debtors’ assets free and clear of claims, liens and encumbrances.

As previously reported, “The Debtors concluded that entering into an agreement (the ‘Stalking Horse Agreement’) for the going concern sale of substantially all the assets of the Company (the ‘Stalking Horse Sale’) to a group of investors led by Sagard Capital Partners, which holds approximately 17% of the Company’s equity (collectively, the ‘Stalking Horse Purchaser’), subject to an auction process in the Bankruptcy Proceedings, was the optimal course to maximize the value of the Company’s business….Pursuant to the Stalking Horse Agreement, the Stalking Horse Purchaser has agreed to acquire substantially all of the Debtors’ assets for U.S. $575 million in aggregate, assume related operating liabilities and serve as a ‘stalking horse’ bidder in the Bankruptcy Proceedings.”

In addition, “Purchaser has deposited $28,750,000 in cash as a ‘good faith deposit’ into an escrow, to be held pursuant to a Deposit Escrow Agreement, which deposit, plus accrued interest, or earnings thereon, shall be returned to the Stalking Horse Purchaser or paid to the Debtors, as provided for in section 9.2(g) of the Stalking Horse Agreement….Sections 9.2(b) and (c) of the Stalking Horse Agreement provide for the payment of an Expense Reimbursement of $3.5 million and Break-Up Fee of $20,125,000 in the event certain Termination Events occur.”

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