[Juersdodfs]

Golf firm True Temper files for Chapter 11
Thu Oct 8, 2009 5:24am EDT Email | Print | Share| Reprints | Single Page

(Reuters) - U.S. golf club shaft maker True Temper Sports Inc filed for Chapter 11 bankruptcy protection on Thursday, hurt by the downturn in the golf equipment industry.

In a filing with the U.S. Bankruptcy Court for the District of Delaware, True Temper listed estimated assets of about $180.5 million and estimated liabilities of about $319 million.

The company, which also makes bicycle tubing, forks, and seat posts said last week it had reached an agreement with secured lenders, bondholders and shareholders to restructure all of its outstanding debt and would file a "pre-packaged" restructuring petition.

The case In re: True Temper Sports Inc, U.S. Bankruptcy Court, District of Delaware, No 09-13446.

(Reporting by Ajay Kamalakaran in Bangalore; editing by John Stonestreet and Simon Jessop)



© Thomson Reuters 2009 All rights reserved

[duawLauff]

I saw this. I wonder how this will shake out as they also own Royal Precision (producer of Rifle shafts). I would think they produce more shafts than anyone. The only steel shaft competition they have may be from Nippon. Not sure though.

[MadMark]

As I mentioned in an earlier post, they are "restructuring" and have their plan in place to do so. When done successfully, restructuring is no big deal, and the restructured company (usually) comes out financially stronger.

[Ecurrexchangess]

This should be a non-event for consumers... a pre-packaged bankruptcy by definition has the support of an "impaired" member of each bankruptcy class (read: someone who is not getting what they originally signed up for). That means it should go in and out of bankruptcy without any major issues.

At the end of the process, the company will have less debt and new owners. That should be a good thing for all of us as golfers.