The majority shareholder of Tough Mudder, Will Dean, and its board of directors have consented to bankruptcy proceedings for the company, making a speedy sale to rival mass participation business Spartan more likely, Sportbusiness.com reported. A motion filed with the U.S. Bankruptcy Court of Delaware states that Tough Mudder’s board of directors will not oppose a petition for chapter 11 reorganisation of the company by its creditors and will not stand in the way of a sale to Spartan. On 7 January it emerged that the obstacle racing event organizer is the subject of chapter 11 proceedings in the U.S. after three companies — Valley Builders, Trademarc Associates and David Watkins Homes — filed a petition in the U.S. Bankruptcy Court of Delaware, claiming they are due a total of $854,558.40. The latest consent motion appears to end a standoff between Tough Mudder’s co-founders, Will Dean and Guy Livingstone, and the company’s largest lender Active Networks over the sale of the company. Dean and Livingstone were accused of “a game of brinkmanship” and of ignoring the best interests of these creditors in holding out for $44 million to sanction the sale to Spartan.
