Briggs & Stratton (NYSE:BGG) is filing for bankruptcy and the news has BGG stock trading on hold following the announcement.
According to Briggs & Stratton, it already has a plan for dealing with bankruptcy. The company says that it will be selling off all of its assets to an affiliate of KPS Capital Partners, an investment company, made for the agreement.
The agreement will have a court overseeing the sale of Briggs & Stratton to the investment company. It’s also worth noting that the agreement allows other entities to make bids for the company before the deal closes.
Briggs & Stratton also points out that it has funding to operate throughout the bankruptcy process. That includes $677.5 million in DIP financing. This will let the company continue to operate normally until it completes the bankruptcy process.
Todd Teske, chairman, president and CEO of Briggs & Stratton, said this about the bankruptcy news.
“Over the past several months, we have explored multiple options with our advisors to strengthen our financial position and flexibility. The challenges we have faced during the COVID-19 pandemic have made reorganization the difficult but necessary and appropriate path forward to secure our business. It also gives us support to execute on our strategic plans to bring greater value to our customers and channel partners. Throughout this process, Briggs & Stratton products will continue to be produced, distributed, sold and fully backed by our dedicated team.”
BGG stock isn’t trading as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.