May 14, 2018

Filing Type:

Company Counsel: BLG

Trustee: Richter

Trustee Counsel: Stikeman Elliott

Industry:

Province:

Rockport Blocker and Rockport Canada et al. (collectively the "Rockport Group"), subsidiaries of Rockport, a West Newton, Massachusetts-based global designer, distributor and retailer of comfort footwear in more than 50 markets worldwide, brought a motion under the CCAA to recognize in Canada the US Chapter 11 bankruptcy proceedings that the Rockport Group filed on May 14. The company partially blamed the separation from its previous owner, Reebok, which sold the company in 2015, for its financial difficulties. The Rockport Group currently owes approximately $53.4MM (USD) under its revolving credit agreement. If the lenders were to require repayment in full of the amounts owed by Rockport Canada, as a co-borrower and under its guarantee of the US debtors' obligations under the agreement, it would be unable to repay the full amount owed. Rockport Canada itself has 64 unsecured creditors that are owed approximately $760.0MM (CAD). The company has entered into an asset purchase agreement to sell substantially all of its assets to CB Marathon Opco, an affiliate of Charlesbank - a private equity group. To facilitate the cooperation between the US and Canadian Court, Rockport Blocker requested that it be recognized to act as foreign representative. Richter was appointed Information Officer. Canadian counsel is BLG for the Rockport Group, Stikeman Elliot for Richter, Gowling WLG for Charlesbank and Goodmans for the senior secured noteholders.

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