S&P: Golfsmith International Holdings L. P. CCR Lowered To 'D' From 'CCC' On Bankruptcy Proceedings
"The rating action follows Golfsmith's announcement that it had commenced a Chapter 11 case in Delaware and that its Golf Town Canada Inc. subsidiary had commenced creditor protection proceedings under the Companies' Creditors Arrangement Act in Ontario," said S&P Global Ratings credit analyst Donald Marleau.
Golfsmith has entered into a support agreement with a group of investors that hold more than 40% of the company's rated C$125 million senior secured second-lien debt, in which it is proposed that the debt be canceled and replaced with US$35 million of new secured notes.
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