(Corrects paragraph 6 to say that Golfsmith owes Callaway Golf
$5.5 million, not $5.5 billion))
Sept 14 Specialty golf retailer Golfsmith
International Inc filed for Chapter 11 bankruptcy on Wednesday
and agreed to sell its Canadian retail chain to a group led by
Fairfax Financial Holdings Ltd and a unit of CI
Golfsmith listed both its assets and liabilities at between
$100 million and $500 million, according to a filing with the
U.S. Bankruptcy Court for the District of Delaware.
The company said it plans to sell itself as a going concern
and partially liquidate the business. However, if the plan
fails, the company plans a full liquidation.
Golfsmith said its Canadian retail chain, Golf Town, had
also commenced creditor protection proceedings under the
Companies' Creditors Arrangement Act in the Ontario Superior
Court of Justice.
Golfsmith said it was working with its first-lien lenders to
finalize the terms of a $135 million debtor-in-possession
The company owes its biggest unsecured creditor, Callaway
Golf, $5.5 million.
Fairfax and CI, which together hold more than 40 percent of
Golfsmith's second-lien secured notes due 2018, will help
Golfsmith recapitalize and restructure its U.S. business.
The Wall Street Journal had earlier reported that Golfsmith
will file for creditor protection in the United States and
Canada as early as Wednesday.(on.wsj.com/2cV3GDa)
The case is in U.S. Bankruptcy Court, District of Delaware,
Case No: 16-12033.
(Reporting by Arathy S Nair in Bengaluru; Editing by Shounak
Dasgupta and Maju Samuel)