According to a report in the Milwaukee Business Journal, on Tuesday this week, a U.S bankruptcy court judge approved Briggs & Stratton's plan to sell the company to private equity firm KPS Capital Partners
The report says that, depending on when the sale is completed, Briggs' unsecured creditors will receive 7-10 cents on the dollar.
The paper also states that the legal team working for Briggs & Stratton and its unsecured creditors committee said the sooner the sale is transacted, the more money will be available.
The judge's approval of the plan allows Briggs and KPS to proceed with the transaction they announced July 20 when the manufacturer filed for Chapter 11 bankruptcy. Ronit Berkovich, an attorney for Briggs, told the Milwaukee Business Journal that the sale will be completed the week of September 21st.
The report went on to say that $35-$45 million in funds will be available to the unsecured creditors, yielding 7-8.4 cents on the dollars, according to Rob Start, attorney for the creditors committee. If the funds reach close to $50 million, that figure could go up to 10 cents on the dollar, he added.
According to the report, "Briggs financial performance has improved since July 20 when the company filed for bankruptcy, which will provide more cash than the company and its advisers initially assumed, Berkovich said. Also, the company received regulatory approvals sooner than anticipated, which helps accelerate the deal, she said."
The way clear for KPS acquiring Briggs & Stratton follows first, Generac pulling out of bidding for the company's assets - followed by an unsecured creditors committee failing to file an objection to the transaction by the September 10th deadline.