Former Performance Sports files revised liquidation plan, disclosure

By Caroline Salls

Pittsburgh, Aug. 25 – Old PSG Wind-down Ltd., formerly Performance Sports Group Ltd., filed a revised joint liquidation Chapter 11 plan and related disclosure statement with the U.S. Bankruptcy Court for the District of Delaware.

According to a news release, the revised plan is based on a global settlement that is intended to provide for payment to the company’s creditors in full and the potential distribution to shareholders in a yet-to-be-determined amount.

The disclosure statement hearing is scheduled for Oct. 3, and the plan confirmation hearing for Nov. 21.

The plan and global settlement are also subject to a companion distribution and approval order from the Ontario Superior Court of Justice.

Specifically under the revised plan, secured claims and priority claims will be paid in full in cash.

Holders of general unsecured claims will be paid in full in cash.

Intercompany claims and intercompany equity interests will be reinstated for the purpose of facilitating intercompany transactions, dividends and distributions.

Securities law claims will be disallowed before confirmation in connection with a securities class action claim, reserved for under the plan in connection with individual securities damages claims and/or to the extent allowed, subordinated in accordance with the Bankruptcy Code.

Holders of parent equity interests will receive substantially all of the assets remaining in the estates after satisfaction of creditor claims and wind-down expenses.

To provide holders of parent equity interests with options to address the differential tax treatment of receiving plan distributions in the United States and Canada, the plan gives them the option to either exchange their existing interests into beneficial trust interests, giving them the right to receive their share of any other shareholder distributable assets and receive distributions from a liquidation trust or retain their interests and receive distributions from the reorganized parent company on account of those interests.

As previously reported, under the original plan, administrative claims, priority tax claims, priority non-tax claims and Companies’ Creditors Arrangement Act charge claims were to be paid in full in cash.

Holders of secured claims were to be paid in full in cash or receive the collateral securing the claim.

Holders of general unsecured claims were to be paid in full in cash without interest.

Holders of individual securities damages claims were to be paid solely from a claim reserve established for that purpose.

Holders of parent equity interests were to receive a share of shareholder distributable assets. The plan allowed these interest holders to receive their distribution in the form of beneficial trust interests or to retain their parent equity interests.

Performance Sports is based in Exeter, N.H., and formerly made sports equipment and apparel. The company filed for bankruptcy on Oct. 31, 2016 under Chapter 11 case number 16-12373.

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