True Temper Sports, an American manufacturer of golf shafts and other sports equipment, reached an agreement with its lenders to restructure its debt earlier this month. As part of the deal, True Temper’s lenders and capital partners have raised $70 million in fresh equity to fund further growth, and agreed on a financial restructuring plan to reduce True Temper’s debt from nearly $275 million to less than $40 million. The scheme includes a pre-packaged bankruptcy filing, which is a mechanism to implement the balance sheet improvements and should not affect the company’s business. The plan provides for full payment of all obligations to employees and suppliers. True Temper expects to receive approval from the U.S. Bankruptcy Court in Delaware and to exit the proceedings in one and a half to two months. Furthermore, the company’s managers said that they fully expected to see a recovery of the business during the remainder of 2009 and into 2010.

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