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Thursday, February 04, 2016

Sports Authority is Preparing to file for Bankruptcy

http://www.bloomberg.com/news/articles/2016-02-04/sports-authority-said-to-take-steps-toward-a-bankruptcy-filing

Sports Authority Inc. is preparing to file for bankruptcy as it faces a debt payment due in 10 days, according to people with knowledge of the matter.
The retailer, once the biggest sporting-goods chain in the U.S., is in talks with lenders including TPG Capital Management LP on a deal to reorganize in Chapter 11 bankruptcy proceedings, said the people, who asked not to be named because the negotiations are private. It’s also mapping out a plan to close as many as 200 of its more than 450 stores under the bankruptcy plan, the people said.
Sports Authority is negotiating with creditors as the clock ticks on a $20 million interest payment that it skipped last month on its $343 million of subordinated debt. It’s been talking to holders of those bonds about accepting a loss in exchange for other securities, said the people. The company would be able to stave off a bankruptcy filing if it reaches a deal with the bondholders.

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