The economic downturn as sent the world’s leading bowling center operator into bankruptcy.
AMF Bowling has filed for Chapter 11 protection with the U.S. Bankruptcy Court in Virginia. The company says it has negotiated an restructuring plan with its major creditors and expects to emerge from bankruptcy in five months, the Wall Street Journal notes.
Company officials said AMF had suffered from a decline in bowling during the recession. A shift toward open play and away from bowling leagues over the past few years also hurt revenues.
After failing to find a buyer over the last year, AMF defaulted on debt payments earlier this month. It is asking the court to approve a $50 million loan from a lender group that includes Credit Suisse (NYSE:CS).
The company’s restructuring plan would transfer ownership to senior creditors, provided they win a court-run auction. If the creditors win, they will forgive more than $216 million in debt. If they don’t, the successful bidder will have to pay the full amount.