According to reports, Briggs & Stratton has reached agreements to proceed with the selling of the company through Chapter 11 bankruptcy by Sept. 25. Any delays beyond that, reports the Milwaukee Business Journal, will result in substantially smaller payments to credits.
In a filing with the bankruptcy court on Sept. 14, Briggs said the sale to New York City private equity firm KPS Capital Partners isn’t completed by Sept. 27, the deal among Briggs, KPS Capital and Briggs creditors will become null and void.
According to the Business Journal report:
The developments emerged on the eve of a hearing scheduled for Tuesday in St. Louis to approve the transaction that would bring new ownership to the iconic Milwaukee-area manufacturer founded in 1908.
Briggs & Stratton and its investment banking firm argue that the agreement provides the best business outlook for the company, the best outcome for employees and management and the highest possible payment of about $40 million to unsecured creditors.
Furthermore, Briggs & Stratton said it has received all the foreign anti-trust approvals it needs to proceed. The transaction could close in just over two months after the July 20 Chapter 11 filing by Briggs and affiliated companies.
The full report is available here.