Former executives of the now-defunct athletic gear maker Performance Sports Group Ltd. are looking to force out the court-appointed liquidating trustee before he can sue them, WSJ Pro Bankruptcy reported. The group of former executives and board members sued liquidating trustee Theseus Strategy Group LLC and its managing director Mark Palmer, claiming that he is threatening to sue them in an effort to make more money from fees by prolonging the case, according to papers filed Wednesday in U.S. Bankruptcy Court in Wilmington, Del. Performance Sports, the former manufacturer known for the Bauer brand of hockey gear, Cascade brand of lacrosse gear and Easton baseball equipment filed for bankruptcy in October 2016. Most of its assets were bought out of bankruptcy by an acquisition vehicle co-owned by Sagard Capital Partners LP and Fairfax Financial Holdings Ltd. for $575 million. In December 2017, Performance Sports won confirmation of its chapter 11 plan, which called for the creation of the trust. According to the lawsuit, New York-based Theseus has conducted a “meritless and hindsight-based effort to second guess” Performance Sports’ former leaders. The accusations are allegedly a calculated move by the trustee to prolong its tenure and allow Palmer to continue making up to $150,000 a year, according to the lawsuit.
