Performance Sports Group Wins Chapter 11 Plan Confirmation

Fourteen months after Performance Sports Group—owner and distributor of sports brands such as BAUER Hockey and EASTON Baseball—entered bankruptcy, Paul, Weiss helped the company win confirmation of its chapter 11 plan. The plan, approved during a joint hearing in Wilmington and Toronto, brings the complex Canadian-U.S. coordinated proceedings to a close.

The plan provides for the distribution of the remaining proceeds of the $575 million sale of the company’s assets to Canadian investors approved by the U.S. and Canadian bankruptcy courts in February. Under the plan, unsecured creditors receive a 100 percent recovery on their claims, with the remaining sale proceeds and certain potential litigation claims going to PSG shareholders. The plan also provides for the settlement of a securities class action commenced prior to the bankruptcy for $1.2 million, plus a 40 percent participation in the proceeds of the estate litigation claims up to $2.5 million.

The Paul, Weiss team included, among others, bankruptcy partner Alice Eaton and counsel Claudia Tobler and Diane Meyers; litigation partners Moses Silverman, Aidan Synnott, Jacqueline Rubin and Leslie Fagen; corporate partners Angelo Bonvino, Andrew Foley and Thomas de la Bastide and counsel Nathan Sawyer; tax partners David Mayo and Lindsay Parks; intellectual property partner Claudine Meredith-Goujon; antitrust counsel Marta Kelly; and employee benefits partner Lawrence Witdorchic and counsel Jason Ertel.