Performance Powersports Group Reaches Agreement to Substantially Reduce Debt, Strengthen Liquidity, and Better Position Company for Long-Term Growth

Stalking Horse Bidder Secured to Support In-Court-Supervised Sale Process

Company and Affiliates Commence Voluntary Chapter 11 Cases to Implement Sale Transaction

$10 Million Commitment for DIP Financing to Support Continued Ordinary Course Operations

Tempe, AZ, January 16, 2023 Performance Powersports Group, Inc. and its affiliates (the “Company”), which is a market leader in the Utility Task Vehicle, All Terrain Vehicle, Go Kart, Golf Cart, and Mini Bike spaces, which are sold through prominent national and regional retail resellers, announced an agreement that would substantially reduce the Company’s debt, strengthen liquidity, and better position the Company for long-term growth.

The agreement, entered into with the Company's current equity sponsor, provides for the assumption of substantially all of the Company’s liabilities that are significantly associated with the go-forward business operations. The transaction is expected to result in the reduction of the Company’s debt and provide the necessary liquidity for the Company to thrive. 

To implement the transaction in an efficient and expedient manner, the Company filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the “Court”). Concurrently, the Company filed a motion requesting approval of a “stalking horse” asset purchase agreement and to facilitate a competitive bidding process under Section 363 of the Bankruptcy Code designed to achieve the highest or otherwise best value for the Company.

As part of the transaction, an affiliate of the Company's equity sponsor has committed to provide $10 million of new money debtor-in-possession (“DIP”) financing to the Company. Subject to Court approval, the DIP financing will provide the liquidity necessary to support ongoing operations in the ordinary course during the Chapter 11 process.

The Company has filed with the Court a series of customary motions seeking to continue operating its business as usual and fulfill its commitments to its valued employees, customers, and other stakeholders during the process. These “first day” motions include requests to continue to pay wages and provide benefits to employees as usual. The Company intends to continue to pay vendors in the ordinary course for all goods delivered and services rendered after the filing.

Court filings and other documents related to the Court-supervised process are available at https://omniagentsolutions.com/PerformancePowersports. Interested parties with questions can call (747) 263-0129 (toll-free) (888) 729-6139 (International).

Klehr Harrison Harvey Branzburg LLP is serving as legal counsel to the Company, Portage Point Partners LLC is serving as investment banker and restructuring advisor.

About Performance Powersports Group

Performance Powersports Group is a lower-cost producer of high-quality, light-to-middle-weight powersports equipment. The Company is a market leader in Utility Task Vehicles, All Terrain Vehicles, Go Karts, Golf Carts and Mini Bikes which it sells through a network of prominent national and regional resellers. The Company sells products under the Coleman brand as well as others; it is not affiliated with Coleman Company, Inc. or any of its affiliates. 

Performance Powersports Group Contact:

Ken Vanden Berg, Chief Financial Officer

kenv@colepow.com