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The
company listed assets in the range of $500 million-$1 billion
and liabilities of $500 million-$1 billion in its voluntary
petition under Chapter 11 of the U.S. Bankruptcy Code in the
District of Delaware. (http://bit.ly/2f0dQlK)
Performance Sports, which was formerly owned by Nike Inc <NKE.N>,
said it has begun proceedings under the Companies' Creditors
Arrangement Act in Canada's Ontario Superior Court of Justice.
The company also said it has entered into an asset purchase
agreement with an investor group led by its biggest shareholder,
Sagard Capital, and Fairfax Financial for $575 million, under
which they will buy almost all of the company's assets. The
investors will also serve as "stalking horse" bidders through
the restructuring process.
Performance Sports' troubles highlight the challenges North
American manufacturers face in the highly competitive sporting
goods market. Sports Authority Inc, a U.S. sporting goods
retailer, also filed for bankruptcy earlier this year.
The company said it expects operations to continue uninterrupted
during the bankruptcy process, through a $386 million
debtor-in-possession financing provided by existing lenders and
the investor group.
Performance Sports was preparing to file for bankruptcy as it
faced a deadline to turn in its annual financial statements to
its lenders after receiving a 60-day extension this summer,
Reuters reported on Friday, citing people familiar with the
matter.
(Reporting by Ismail Shakil in Bengaluru; Editing by Martina
D'Couto)
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