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True Temper Solves Financial Problems

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Within two weeks after filing for Chapter 11 bankruptcy protection, frame tubing, forks, handlebar, seat post, stems and bottle cage maker True Temper Sports Inc has now

True Temper Solves Financial Problems

MEMPHIS, USA – Within two weeks after filing for Chapter 11 bankruptcy protection, frame tubing, forks, handlebar, seat post, stems and bottle cage maker True Temper Sports Inc has now reached an agreement with its lenders to restructure its debt.

As part of the deal, True Temper’s lenders and capital partners have raised US$ 70 million in fresh equity to fund further growth, and agreed on a financial restructuring plan to reduce True Temper’s debt from nearly US$ 275 million to less than US$ 40 million.

The scheme includes a pre-packaged bankruptcy filing, which is a mechanism to implement the balance sheet improvements and should not affect the company’s business. The plan provides for full payment of all obligations to employees and suppliers.

True Temper expects to receive approval from the U.S. Bankruptcy Court in Delaware and to exit the proceedings in one and a half to two months. Furthermore, the company’s managers said that they fully expected to see a recovery of the business during the remainder of 2009 and into 2010.

 

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