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MAAX asset sale approved by U.S., Canadian courts
By Caroline Salls
Pittsburgh, Aug. 6 - MAAX Corp. said its agreement to sell substantially all of its assets and property to senior lender Brookfield Bridge Lending Fund Inc. has been approved by the U.S. Bankruptcy Court for the District of Delaware and the Quebec Superior Court.
According to a company news release, court approval was the final key condition to the sale closing.
"This is a significant milestone in our progress toward a successful recapitalization and a positive future for MAAX and its stakeholders," MAAX president and chief executive officer Paul Golden said in the release.
"A completed sales transaction will provide us with dedicated new ownership, a strong balance sheet and greater financial flexibility.
"This will enable us to focus on executing our business strategy, building on our reputation for innovation, and increasing our position of leadership in the marketplace," Golden added.
As previously reported, Brookfield has agreed to purchase substantially all of MAAX's assets and property, to continue to employ MAAX's employees and to fulfill MAAX's obligations to its customers and suppliers.
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.
According to a Wednesday filing, the Delaware bankruptcy court also granted the company recognition of its Companies' Creditors Arrangement Act proceedings that were filed in June to allow MAAX to complete the asset sale.
MAAX, a Montreal-based manufacturer of bathroom and spa products, filed for Chapter 15 bankruptcy on July 14. The case number is 08-11443.
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