Schutt Sports, in bankruptcy proceedings since Sept. 6, has received an offer from Kranos Intermediate Holding Corp. to acquire the company for $25.1 million. According to documents filed in U.S. Bankruptcy Court in Wilmington, DE, Schutt is asking court approval to hold a Dec. 13 auction to explore competing offers.
Schutt Sports said Kranos' offer will act as a “stalking horse” bid to entertain other offers in bankruptcy court.
The helmet maker is seeking court approval to set up the guidelines governing the auction at a hearing set for Nov. 29. Potential bidders would have to sign a confidentiality agreement and offer written proof by Dec. 3 that they have the financial wherewithal to make a bid.
Under the proposed plan, competing offers would be due Dec. 10, and a hearing would be held Dec. 15 to approve the sale.
Schutt Sports Inc. filed for bankruptcy protection one month after being hit with a $29 million patent infringement verdict. The football helmet and team protective equipment maker is asking a Delaware bankruptcy judge to halt enforcement of the patent verdict won by rival Riddell Inc., as well as related litigation, as it decides whether to pursue a sale or reorganization.
The filing precluded any activity in the Wisconsin patent litigation and ensures that Riddell litigates against Schutt in Delaware.
On September 1, Schutt was hit by another lawsuit in Wisconsin claiming that its Air Flex QB/WR Football Shoulder Pad violated Riddell's patented shoulder pad technology.
Schutt is the world's largest provider of football helmets and faceguards, the closely held company says on its Web site. The company had sales of $68.6 million for its 2009 fiscal year, it said in a court filing.
Riddell, an affiliate of Easton-Bell Sports Inc., is the official helmet provider for the NFL.
