Court approves Prince reorganization
June 22, 2012
Bordentown, NJ — Prince Sports Inc. announced today that the United States Bankruptcy Court for the District of Delaware has approved the Disclosure Statement for the Company’s Plan of Reorganization. The Court’s approval follows its approval on Tuesday of the licensing agreement with Prince Americas LLC, an affiliate of Battle Sports Science and Waitt Company (waittcompany.com). The Court’s rulings are a result of the comprehensive agreement reached between the Company, its secured lender ABG Prince (which is owned by Authentic Brands Group) (“ABG”) and the Official Committee of Unsecured Creditors (the “Committee”).
Prince Sports’ Chief Executive Officer Gordon Boggis said, “The agreement with our major creditors on the key terms of a Plan of Reorganization and their joint support for the license agreement with Prince Americas is a major step toward Prince’s emergence from Chapter 11. Given the support of our major creditors, we are confident that with Prince Americas we will return to normal order levels with our suppliers and our customers, getting our business and our world-class brands back on track.” Mr. Boggis also noted that he “was pleased with the support of the Prince brand expressed by the Company’s suppliers through these negotiations and was looking toward an excellent working relationship as Prince emerges from bankruptcy and transitions in the coming months”.
The license agreement with Prince Americas has been revised to include all of North, South and Central America. The term of the agreement is for ten years with three renewal options. The entry into the revised expanded agreement with Prince Americas is a major step in Prince Sports’ conversion from an operating company to an intellectual property licensing company. The Company anticipates entering into license agreements covering Europe, Asia, Australia and other geographies in the very near future.
With the approval of the Disclosure Statement, the Company will move toward confirmation of their Plan of Reorganization on July 27, 2012. Under the terms of the Plan, ABG will convert its secured debt into all of the equity in the reorganized Prince, including its subsidiaries in Europe and Asia. The Company will emerge from bankruptcy shortly after the Plan of Reorganization is confirmed.