Schutt Sports readies for $25.1 million sale or auction of assets

By Lisa Kerner

Charlotte, N.C., Nov. 23 - Schutt Sports, Inc. asked the court to approve bid procedures for the proposed $25.1 million sale of its assets to stalking horse bidder Kranos Intermediate Holding Corp. or to the highest bidder, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing to approve the bid procedures is set for Nov. 29.

The purchase price is subject to a working capital adjustment.

The purchased assets include inventory, furniture, fixtures and equipment, as well as certain property, the filing said.

Schutt Sports is also asking the court to approve a break-up fee of $800,000 plus $200,000 for expenses payable to Kranos if it is not the winning bidder.

The minimal initial bid must equal the stalking horse bid plus $1.2 million.

Each bid must be accompanied by a $2.5 million deposit.

The bid deadline is Dec. 10 at noon ET.

An auction, if necessary, will be held on Dec. 13.

The sale hearing is set for Dec. 15.

Schutt, a Litchfield, Ill.-based sports equipment manufacturer, filed for bankruptcy on Sept. 6. The Chapter 11 case number is 10-12795.

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