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MAAX agrees to sell substantially all assets to senior lender through CCAA case
By Caroline Salls
Pittsburgh, June 12 - MAAX Corp. has agreed to sell substantially all of its assets and property to senior lender Brookfield Bridge Lending Fund Inc., and the company has started proceedings under the Companies' Creditors Arrangement Act to complete the sale, according to a news release.
In addition to purchasing substantially all of MAAX's assets and property, the lender will assume substantially all of the company's trade obligations and continue to employ substantially all of MAAX's employees.
The purchase price will be equal to the amount owed under the company's senior secured credit facility, plus the assumption by Brookfield of liabilities.
"This transaction will place the MAAX business on a much stronger financial footing that will enable it to focus on building upon its competitive position and positive reputation," MAAX president and chief executive officer Paul Golden said in the release.
"It preserves the MAAX business and ensures its continuance as a successful competitor in the marketplace."
MAAX said the sale, which is subject to approval by the Superior Court of the Province of Quebec, is expected to close within 60 days.
The company said the CCAA process will not affect its day-to-day operations, and it has access to the funding necessary to maintain its operations during the sale period.
Brookfield has also agreed to provide MAAX with an additional C$30 million in available financing.
"Our sales in Canada remain strong," Golden said in the release.
"We have plans to continue growing our leadership position and market share in the United States, and we expect that the completion of the sale transaction will enable MAAX to emerge as a stronger company for the long term in North America and Europe."
MAAX is a Montreal-based manufacturer of bathroom and spa products.
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