This afternoon, Judge Sontchi filed an “Order Directing The Appointment Of A Chapter 11 Trustee” in the Tough Mudder bankruptcy case. This filing states :
- The Motion is granted; and it is further ORDERED, that the United States Trustee shall promptly appoint a Chapter 11 Trustee in the captioned involuntary chapter 11 cases.
- ORDERED, that the Chapter 11 Trustee shall manage the operations of the Alleged Debtors and develop a restructuring or sale strategy, whichever is in the best interests of the creditors of the Alleged Debtors.
- ORDERED, that the Chapter 11 Trustee may negotiate a sale of the Alleged Debtors’ assets, subject to Court approval and higher and better offers.
The first scheduled court date is scheduled for this Friday the 24th. However, the judge can and did decide to move forward ahead of time because all parties in the case (Tough Mudder, Spartan, Active, and the creditors) are aligned.
What happens next is a Trustee will be chosen by a pool of candidates in the next 24-48 hours.
From there, the Trustee will begin to work with all parties to guide the parties through the Chapter 11 process. What we in the community hope is that The Trustee will find a way to re-open the doors and put tickets back on sale.
One thing to note is that Tough Mudder Inc operates Tough Mudder in the US, and owns subsidiaries that operate in the UK, Germany and Canada, so progress may happen on different timelines in each region.
Read the most recent articles, and how we got to this point here.
Matt B. Davis
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