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

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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