Golfsmith International wins approval to take bids for U.S. assets

By Caroline Salls

Pittsburgh, Oct. 6 – Golfsmith International Holdings, Inc. received court approval of the bid procedures for the proposed sale of substantially all of its U.S. assets through either a going-concern transaction or an alternate sale transaction, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Golfsmith conducted an extensive auction process before filing its Chapter 11 cases, and the process culminated in a binding proposal for the sale of its Canadian business operating as Golf Town to an entity owned by Fairfax Financial Holdings Ltd. and CI Investments Inc., which collectively own roughly 40% of Golfsmith’s senior secured notes. That sale will be completed as part of Golfsmith’s Companies’ Creditors Arrangement Act case.

The proceeds of the Golf Town transaction will be used to significantly reduce the Golfsmith debtors’ ABL credit facility obligations.

The company said it will either sell its U.S. businesses or assets through a court-supervised auction process or restructure through a Chapter 11 plan process.

Under the proposed bid procedures for the sale of the U.S. assets, bids are due by 5 p.m. ET on Oct. 17.

An auction will be held on Oct. 19, if necessary, and the sale hearing is scheduled for Oct. 31.

Golfsmith, an Austin, Texas-based golf specialty retailer, filed bankruptcy on Sept. 15. Its Chapter 11 case number is 16-12033.

© 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.