Edwin Watts Golf Shops get final authorization to use cash collateral

By Kali Hays

New York, April 29 - Edwin Watts Golf Shops, LLC obtained final approval for continued use of the cash collateral of its subordinated lender, Sun Capital Partners, Inc., according to a Tuesday order with the U.S. Bankruptcy Court for the District of Delaware.

The court allowed the company interim access to the cash collateral Jan. 20.

As previously reported, the company said it needs to use the cash collateral to keep performing its asset sale obligations, including the continuation of a store-closing sale, and to wind down its business.

Under the order, the company and its committees will release all claims against the lender and are prohibited from any future claims.

The cash collateral use will terminate on the earlier of an event of default or July 31, provided, however, that the subordinated lender will have the sole discretion to extend the cash use beyond those dates.

The use will also be terminated if the company fails to obtain approval of a disclosure statement by June 9 and confirmation of a plan by July 11.

Edwin Watts Golf, a Fort Walton Beach, Fla.-based specialty golf retailer, filed for bankruptcy on Nov. 4. The Chapter 11 case number is 13-12876.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.