A court-appointed receiver plans to sell paintball equipment makers
Quebec-based G.I. Sportz, identified in Canadian documents last year as the largest global manufacturer and distributor of paintball-related products, has “no ability to repay” the $29 million it owes under a credit agreement, according to a
A judge in Quebec on Thursday handed broad control of the firm’s finances to consulting firm KSV Advisory, bankruptcy
The company is majority owned by private equity firm
G.I. Sportz has struggled in recent years, racking up more than $45 million of losses since the end of 2018. The Covid-19 pandemic made matters worse, as social distancing regulations curtailed paintball games, which are often played in teams in relatively small areas.
The court-appointed receiver, Fulcrum and an entity called Kore Outdoor Inc. are nearing a deal that would have Kore buy G.I. Sportz’s operations and keep the business alive. Kore would pay with a note “equal to the value” of the assets and take on the outfit’s secured debt, court papers show.
The case is KSV Restructuring Inc. and G.I. Sportz Inc.,
(Adds plans to sell business, run-up to bankruptcy starting in first paragraph.)
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Claire Boston, Nicole Bullock
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