Performance Sports Group to file for bankruptcy

In an effort to restructure throughout its entire company, Performance Sports Group Ltd. has decided to file for Chapter 11 Bankruptcy. The announcement was made October 31 citing that the company has filed voluntary petitions for bankruptcy in the District of Delaware.

The company decided to undergo this process in order to “facilitate a financial and corporate restructuring through a going-concern sale of substantially all of the Company’s assets,” as reported by Street Insider. The proceedings will commence under the Companies’ Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice. While the company is in the midst of this filling, Performance Sports Group (PSG) is expected to continue uninterrupted in day-to-day operations.

As part of the company’s new plan, PSG has also agreed to an asset purchase with an acquisition vehicle, owned by Sagard Capitals, L.P. and Fairfax Financial Holdings Limited as reported by SI. All assets of the company are to be purchased for 575 million dollars including its North American subsidiaries. The sale is awaiting a final approval that will be taking place early next year in 2017.