Schutt Sports Filed For Chapter 11 Bankruptcy Protection
Wed, 08 Sep 2010 12:34:37 CDT
(Litchfield)--Schutt Sports, Inc. announced that Schutt and certain of its affiliates have filed for Chapter 11 bankruptcy protection in Federal Court in Delaware. According to Robert Erb, President and CEO of Schutt Sports, management and board of directors determined that the Chapter 11 process would provide the best long term solution for our customers, suppliers, and employees.
Currently the company is exploring options to maintain long term health, including selling some or all of the businesses or raising additional equity. Schutt recently received a proposal for a plan of reorganization funded by a group of investors. Under the reorganization, Riddell, Inc., whose lawsuit prompted the Chapter 11 filing, would not be given the opportunity to invest in the proposed right offering.
Schutt has obtained a debtor in possession financing facility of thrity four million dollars, which will allow the company to continue normal operations.
Schutt will also pursue an appeal of a recent judgement entered against the company in favor of Riddell, Inc. during the process.
WebReadyTM Powered by WireReady®NSI