Exclusive: Bauer hockey gear maker preparing to file for bankruptcy - sources
By John Tilak and Jessica DiNapoli
TORONTO/NEW YORK (Reuters) - Performance Sports Group Ltd PSG.TO, the maker of Bauer hockey gear, is preparing to file for bankruptcy in the United States and Canada as early as Sunday evening, according to people familiar with the matter.
The company, which also makes baseball bats and other sports equipment, intends to file with a buyer in hand, and seek out higher bids through a bankruptcy auction, the people said, requesting anonymity because the matter is confidential.
Canadian alternative asset manager Brookfield Asset Management BAMa.TO and investor Sagard Capital Partners LP, a unit of Power Corp of Canada POW.TO, said this week they were exploring a deal with Performance Sports. In a separate filing, Sagard said that it was also working with Canadian investment firm Fairfax Financial Holdings Ltd (FFH.TO: Quote) on a deal for the manufacturer.
Performance Sports and Sagard Capital declined to comment. Brookfield and Fairfax did not immediately respond to requests made outside office hours for comment.
Brookfield and Sagard are among the biggest shareholders in Performance Sports.
The plans are not yet finalized, with Performance Sports alternatively seeking another break from its lenders, the people said.
Performance Sports Group faces a Friday deadline to turn in its annual financial statements to its lenders after receiving a 60-day extension this summer. If the company does not file its report, or receive another extension from its lenders, it will default and the lenders can call in all their debt.
Performance Sports has said it was delayed in filing its financial statements by an internal investigation into its accounting. Continued...