Saving Bauer
PSG nears deal to forestall default
The maker of Bauer hockey equipment is close to a deal to get more breathing room from creditors, The Post has learned.
Performance Sports Group is nearing a deal to get a 60-day extension to comply with its loan covenants, a source close to the situation said.
Without a deal, the company would be in technical default on Aug. 29, sources said.
Last week, PSG said it was the subject of a Securities and Exchange Commission investigation — and would not be filing its annual report on time.
Not filing the report by Aug. 29 would put it in default, opening it up for possible creditor action.
PSG’s high-profile board includes the Edmonton Oilers top executive Bob Nicholson. Until July, it also included former Boston Red Sox Chief Executive Officer Larry Lucchino.
The 60-day extension, while giving the Exeter, NH, company breathing room, does not com- pletely eradicate its financial woes.
Some creditors are interested in swapping their debt for equity and taking over the business, a source familiar with the situation said.
However, the waiver gives all parties more time to negotiate.
PSG is working with investment bank Centerview Partners in the talks with creditors who are owed $450 million, sources said.
Former PSG Chairman Graeme Roustan, who has been a fierce critic of management, said recently that he has hired bankers to explore a PSG bid.
Reached Thursday, Roustan declined further comment.
Roustan, as part of his battle against management, has been trying to convince a judge to release a survey of PSG’s customers — which he feels will show the company mis-classified earnings.
PSG shares fell 1.6 percent on Thursday, to $1.80. They have fallen 81 percent this year and are down 87 percent from their 52-week high of $14.43.
PSG declined comment.