Maurice Sporting Goods asset sale procedures, DIP financing approved

By Caroline Salls

Pittsburgh, Dec. 12 – Maurice Sporting Goods, Inc. received court approval of the bid procedures for the proposed $39 million sale of its assets to stalking horse bidder Middleton Management Co., LLC, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

If Middleton is not ultimately the high bidder for the assets, Maurice will pay it a $500,000 break-up fee.

Competing bids must include a minimum $1.5 million overbid amount.

An auction will be held on Dec. 27, if necessary. Bids at auction must be made in minimum increments of $100,000.

The sale hearing is scheduled for Dec. 28.

In addition, Maurice obtained final court approval to access $18.02 million of debtor-in-possession financing.

The DIP financing is being provided by Maurice’s bank group, led by Bank of Montreal.

Interest on the DIP loan will accrue at a rate of 6%.

The company said the DIP financing will be used to maintain uninterrupted service and delivery of products to Maurice customers during the completion of the sale transaction and to ensure payment to vendors for post-bankruptcy purchases in the ordinary course.

The financing will mature on Dec. 31.

Maurice is a Northbrook, Ill.-based distributor of outdoor sporting goods. The company filed bankruptcy on Nov. 20 under Chapter 11 case number 17-12481.

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