|Schwinn/GT Corp. Official Sale AnnouncementSchwinn/GT Corp. said yesterday that the Court and interested parties have fully considered and reviewed all bids made in regard to the sale of Schwinn/GT’s Cycling and Fitness Divisions as part of the court-supervised auction held this week. The joint bid presented by Direct Focus, Inc. (Nasdaq: DFXI) and Pacific Cycle LLC for $151 million was considered to be the highest and best offer for the assets of the Company. The sale is subject to satisfaction of certain conditions, including the expiration of waiting periods under the Hart-Scott-Rodino Act, which is expected by Monday, September 17, 2001. The sale of both the Cycling and Fitness Divisions is expected to close no later than Friday, September 21, 2001.|
At the close of the auction, Jeff Sinclair, Schwinn/GT’s Chief Executive Officer stated, “By stimulating the competitive bidding process, Schwinn/GT has attempted to ensure that its creditors will receive the greatest possible recovery. We will begin working with Direct Focus and Pacific immediately to achieve an orderly transition of the businesses.”
The proceeds from the sale transaction will be held in escrow pending further order of the Court and will be used to discharge liabilities and satisfy creditors= claims in accordance with the Bankruptcy Code.
Schwinn/GT filed voluntary petitions for reorganization under Chapter 11 on July 16, 2001, in the United States Bankruptcy Court for the District of Colorado in Denver.www.gtmountainbikes.com
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