Ten months after filing for Ch. 11 bankruptcy reorganization, TKO Sports Group USA Limited has decided to exhibit in a small space at the Health & Fitness Business Show, Aug. 3-5. The company in the meantime has consolidated facilities and products and laid-off a founder to streamline its operations.
In addition, the U.S. District Court, Southern District of Texas, on July 20 accepted and approved TKO's reorganization plan, which had been filed with the court June 30. Creditors have until Aug. 18 to vote on the plan, with a hearing set for Aug. 23 to confirm it.
"The court finds the disclosure statement contains 'adequate information' for the estate's creditors to determine whether to vote for the plan," wrote Judge Jeff Bohm in the court statement.
In the plan obtained by SNEWS®, TKO (www.tko.com) blamed its filing for bankruptcy reorganization on the rise of the American dollar and the high cost of manufacturing in Canada and the United States. It goes on to state that its primary secured lender, Bank of Montreal, has agreed to a settlement to reduce its debt.
The Bank of Montreal "was owed approximately $5.2 million. The Global Settlement provided for the payment to BOM of $2,450,000 in full and final satisfaction of the debt and the reallocation of $150,000 from BOM for the benefit of creditors holding allowed general unsecured claims," the plan states. "Of this settlement amount, $100,000 will serve to fund the initial payment to such creditors pursuant to this Plan."
CEO Garry Kurtz told SNEWS® in late June he would have a statement about the company's comeback, but has since declined comment, noting it was "premature" for any announcement other than to note the court's approval of its plan.
TKO filed for reorganization Oct. 11, 2005. For additional background in a Jan. 3, 2006, follow-up SNEWS® story ("TKO playing 'ultimate game of chicken'?"), click here.
SNEWS® View: We began hearing many months ago that TKO "was back," and that it was selling goods on a container basis while heading more toward high-end specialty and into the commercial realm. Certainly, a 10-x-10 booth at the only specialty show is tiny (#214), but it's a place to start when you are emerging from Ch. 11.