Performance Sports Group Ltd, the producer of Bauer ice hockey equip, said on Monday it had filed for bankruptcy protection in the United States and Canada to encourage a rebuilding and offer of the greater part of its assets.
The company recorded assets of $500 million to $1 billion and liabilities of $500 million to $1 billion in its intentional petition filed in Delaware under Chapter 11 of the U.S. Bankruptcy Code.
That means people owed money by the company can’t start seizing assets to recoup their losses without a court monitor’s permission.
The company, which likewise makes hockey equipment and different sports gear, said it would put its assets available to be purchased yet as of now had an arrangement to offer almost every one of them for $575 million to an investment group drove by Sagard Capital, its greatest shareholder, and Fairfax Financial Holdings Ltd.
A stalking horse bid is so-called because it’s an offer to buy the company’s assets which could be beaten by someone else, but serves as a floor for subsequent offers.
Previous Performance Chairman Graeme Roustan in August said that he was working with invvesment banks to explore an offer for the company.