Documents filed with the SEC "have raised red flags"
about The Hockey Company's credit arrangements and financial
results, according to Francois Shalom of the Montreal
GAZETTE. The figures show that a Quebec lending institution
"appears set to call in a" C$135.8M loan to the company,
while a one-year extension on loans and letters "of
additional credit worth up to" C$70M from GE Capital Corp.
"has been refused." GE Capital's credit agreement with the
Montreal-based company expires on January 31. But The
Hockey Company Senior VP & CFL Russell David "rejected the
claim of financial trouble, saying the company is
renegotiating its credit arrangements" and that it is "no
cause for alarm." But two "insiders" said there is "a lot
of turmoil at the company," and that there are "big layoffs
coming" among its 1,700 employees. David "did admit that
the company will have to restructure in some way and is
'possibly looking at a headcount reduction.'" David added
that the moves could mean taking some products "we now make
domestically and take it overseas," while other
possibilities include "an equity participation or a merger
with another company" (Montreal GAZETTE, 12/16).
