True Temper Sports, Inc. completed its financial restructuring plan in bankruptcy proceedings. An investor group led by Newport Global Advisors and Providence Equity Partners joined together to acquire a majority equity interest in the golf shafts and performance sports equipment maker.
True Temper said the significant new capital investment and resulting loan repayments, combined with the overall debt restructuring, resulted in eliminating over 80% of the company's indebtedness. In addition to the debt reduction, True Temper has also obtained a new revolving credit facility led by GE Capital.
On Oct. 8, True Temper filed a pre-packaged Chapter 11 petition with the U.S. Bankruptcy Court in Delaware as part of a plan to reorganize its debt structure. The company had reached an agreement with its secured lenders, bondholders and shareholders to restructure all of its outstanding debt in order to reduce loan balance.
The deal will reduce the company’s debt from around $275 million to less than $40 million.
