Performance Group Files For Bankruptcy, Enters 'stalking Horse' Asset Purchase Agreement

By Tomi Kilgore Markets MarketWatch Pulse

Peformance Sports Group Ltd. said Monday it has filed for bankruptcy, as part of a restructuring that includes a "stalking horse" agreement to sell of substantially all of its assets for $575 million. The acquisition vehicle of the assets will be co-owned by Sagard Capital Partners L.P. and Fairfax Financial Holdings Ltd. The sports equipment and apparel seller will conduct a bidding process, to be approved by the courts, to seek higher bids for the sale of its assets. Debtor-in-possession financing will be provided by Bank of America and certain other lenders. Performance Group's stock, which is currently halted for news, has plunged 64% year to date, while the S&P 500 has gained 4%.

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