Merchant Provides Sport-Haley DIP Financing
Sport-Haley Holdings filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code today as part of its agreement with its secured lender. Merchant Factors will provide a DIP financing facility to enable normal operation of the company’s ongoing operations, including the normal course payments to employees.
The filing, done in cooperation with the company’s primary lender, will allow the Denver-based company to complete winddown of its Chromcraft Revington affiliate, reduce outstanding debt and maximize value for all stakeholders. The petition does not include or impact Sport-Haley, an independently operated manufacturer of womens’ specialty sportswear whose sole shareholder is Sport-Haley Holdings.
“After extensive discussions with Chromcraft’s primary lender, we have decided to take the necessary step to protect our ongoing operations, as we continue with the winddown of our Chromcraft Revington affiliate. The purpose of the filing is to gain bankruptcy court protection while we restructure our balance sheet. Throughout this process, we intend to continue business as usual,” said Samuel Kidston, Chairman and CEO of Sport-Haley Holdings.
Sport-Haley Holdings is a diversified holding company focused on increasing shareholder value by maximizing intrinsic value per share over the medium- and long-term through the effective turnaround and management of its acquired companies.
Mississippi-headquartered Chromcraft Revington designs, manufactures and imports residential and commercial furniture marketed primarily in the U.S.