From the WSJ Blog, dated 30 Sept...
Meanwhile, sports equipment company True Temper Sports Inc. also plans a prepackaged bankruptcy, under an agreement with lenders, bondholders and shareholders. The company will get about $70 million in new equity.
True Temper was acquired by Gilbert Global Equity Partners and management in 2004 from Cornerstone Equity Investors for $342 million, according to a filing with the Securities and Exchange Commission. Officials at Gilbert Global and True Temper couldn’t be reached for comment, but the firm’s Web site lists True Temper as a portfolio company.
True Temper produces golf shafts and performance bicycle equipment. The company said its restructuring will reduce the amount of its loans from $275 million to less than $40 million. The $70 million in new money, which will be used to reduce debt, was raised by “a group of the company’s current debt holders and capital partners,” True Temper said.
In addition to the cash infusion, the company has received a new $12.5 million revolving credit facility from existing lenders.
The company’s second quarter sales fell to $21.2 million from $37.7 million in the 2008 quarter, as adjusted Ebitda declined to $1 million from $10.4 million. True Temper attributed the decline to “the global recessionary pressures and weaker retail landscape for discretionary consumer products” and inventory reductions by retailers and other customers.
Earlier in 2009, the company fell out of compliance with certain covenants. In March, it missed a principal payment of $20 million due under its revolving credit loans, and also missed an interest payment to noteholders.