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True Temper, Stallion, Trump, Lyondell: Bankruptcy (Update)
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By Bill Rochelle
Oct. 8 (Bloomberg) -- True Temper Sports Inc., the world’s largest golf club shaft manufacturer, filed a so-called prepackaged Chapter 11 plan this morning in Delaware.
Already accepted by creditors, True Temper intends to have the bankruptcy court approve the plan at a confirmation hearing within 45 days.
True Temper announced on Sept. 30 that secured lenders, bondholders and shareholders agreed on the prepack designed to reduce funded debt by 80 percent, from $275 million to less than $40 million.
Debt holders and stockholders are injecting $70 million cash that will be used pay down first-lien debt totaling $105.6 million. The remainder of the first-lien debt will be converted into a new term loan under the plan.
The $45 million in second-lien debt is to have 11.4 percent of the new stock. Most of the remainder goes to the investors. While trade suppliers are to be paid in full, other unsecured creditors are to receive nothing.
The holders of $125 million in subordinated debt are to receive nothing. The investors financing the plan hold 45 percent of the subordinated debt.
The petition listed assets of $180 million against debt totaling $319 million.
True Temper blamed the filing on the recession and the resulting decline in sales. Where 2008 revenue was $124 million, sales of $39.7 million in the first half of 2009 were 46 percent below the same period in 2008. The net loss in the first half was $24.1 million.
Memphis, Tennessee-based True Temper didn’t make payments due in March on both the secured revolving credit and the $125 million in 8.375 percent subordinated notes.
True Temper is controlled by private-equity investor Cornerstone Equity Investors.
The case is In re True Temper Sports Inc., 09-13446, U.S. Bankruptcy Court, District of Delaware (Wilmington).
Things must be tough if the best are suffering
I am trying to say I am shocked
Share | Email | Print | A A A
By Bill Rochelle
Oct. 8 (Bloomberg) -- True Temper Sports Inc., the world’s largest golf club shaft manufacturer, filed a so-called prepackaged Chapter 11 plan this morning in Delaware.
Already accepted by creditors, True Temper intends to have the bankruptcy court approve the plan at a confirmation hearing within 45 days.
True Temper announced on Sept. 30 that secured lenders, bondholders and shareholders agreed on the prepack designed to reduce funded debt by 80 percent, from $275 million to less than $40 million.
Debt holders and stockholders are injecting $70 million cash that will be used pay down first-lien debt totaling $105.6 million. The remainder of the first-lien debt will be converted into a new term loan under the plan.
The $45 million in second-lien debt is to have 11.4 percent of the new stock. Most of the remainder goes to the investors. While trade suppliers are to be paid in full, other unsecured creditors are to receive nothing.
The holders of $125 million in subordinated debt are to receive nothing. The investors financing the plan hold 45 percent of the subordinated debt.
The petition listed assets of $180 million against debt totaling $319 million.
True Temper blamed the filing on the recession and the resulting decline in sales. Where 2008 revenue was $124 million, sales of $39.7 million in the first half of 2009 were 46 percent below the same period in 2008. The net loss in the first half was $24.1 million.
Memphis, Tennessee-based True Temper didn’t make payments due in March on both the secured revolving credit and the $125 million in 8.375 percent subordinated notes.
True Temper is controlled by private-equity investor Cornerstone Equity Investors.
The case is In re True Temper Sports Inc., 09-13446, U.S. Bankruptcy Court, District of Delaware (Wilmington).
Things must be tough if the best are suffering
I am trying to say I am shocked
