Torpedo Sports USA's wholly owned operating subsidiary, Torpedo Sports, Inc., has filed in Canada a notice of its intention to make a proposal to its creditors for the restructuring of its debts.
Torpedo is working cooperatively with its secured lender and will seek to make an acceptable debt restructuring proposal to settle the claims of unsecured creditors. The proposal procedure allows Torpedo to continue to operate its business subject to protection of the secured interests of its lender and suspends efforts by creditors to collect their debts while Torpedo prepares and proposes to creditors a plan to resolve their indebtedness. Torpedo hopes to develop an acceptable plan during the time periods allowed by Canadian law and any reasonable extensions provided under applicable procedures.
“This filing in Canada gives us some breathing room to work with creditors on a plan to reposition our operating business,” stated Barry Hollander, Chief Financial Officer. “In addition, as we stated last week, this gives us the time we need to explore all our options with respect not only to our Canadian operations, but for Torpedo Sports USA going forward. While we ultimately believe the sporting goods business could be successful, we, along with our recently retained advisors, Blake Advisors, are exploring a variety of options that may include a complete change in focus for the holding company. We hope this move will allow us to utilize the assets and business of Torpedo in Canada whatever we choose for the future, be that continuing those operations, or some other form of restructuring.”
