Converse Inc. announces completion of asset sale
Converse Inc. has reported the sale of substantially all of its assets to Footwear Acquisition, Inc. The sale was accomplished as scheduled on April 30, 2001. As previously disclosed in leatherbiz.com, the sale price was $117,500,000, subject to adjustments. Over the next several weeks, closing levels of inventory and accounts receivable will be calculated, and the final sale price will be determined.
Proceeds of the sale will be used to repay amounts outstanding under the Company's debtor in possession financing facility. The remaining proceeds will be utilised to fund the ongoing expenses of the Company's Chapter 11 case and to fund creditor distributions. Creditor claims substantially exceed available proceeds, but there has been no determination of any amount payable to unsecured creditors or the timing of any such payment. No distribution to stockholders is expected.
Because the sale included the name "Converse" and all other intellectual property, the Company plans to change its name to "CVE Corporation."
