The U.S. Bankruptcy Court for the District of Delaware granted various forms of relief requested with respect to the U.S.-based business of Golfsmith International Holdings in connection with its voluntary Chapter 11 restructuring.
The Ontario Superior Court of Justice approved similar relief in the creditor protection proceedings of the company’s Canada-based business (Golf Town) under Canada’s Companies’ Creditors Arrangement Act (CCAA).
The bankruptcy court and CCAA Court approved up to $135 million in debtor-in-possession (DIP) financing, which will be used to support the businesses during the court-supervised process and allow the company to pay its vendors in full under normal terms on a go-forward basis. According to documents filed with the court, Antares Capital is serving as agent for the DIP financing.
Golf Town has entered into a definitive purchase agreement for the sale of substantially all of the assets of the Golf Town business to an entity controlled by Fairfax Financial Holdings and certain investment funds managed by a division of CI Investments and intends to implement the transaction in connection with the CCAA proceedings.
“The bankruptcy court and CCAA court’s approval of the relief requested by the company is another positive step forward in our efforts to restructure our businesses, and to continue operations in the ordinary course for the benefit of a broad range of stakeholders, including customers, employees and vendors,” said CEO David Roussy.
Austin, TX-based Golfsmith has 109 stores in the U.S. operating under the Golfsmith banner and 55 stores in Canada operating under the Golf Town banner.