Sportcraft Canada Ltd.

Receivership

This page is for information purposes only and you should consult your professional adviser if you have any questions or are uncertain as to your rights or obligations.

On March 5, 2012, on an application made by SunTrust Bank (“SunTrust”), an Order was granted by the Ontario Superior Court of Justice (Commercial List) (the “Court”), pursuant to section 243(1) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c.B-3, as amended (the “BIA”) and section 101 of the Courts of Justice Act, R.S.O. 1990, c.C-43, as amended, that appointed PricewaterhouseCoopers Inc. as receiver (the "Receiver") over all of the assets, undertakings and properties (the “Property”) of Sportcraft Canada Ltd. (“Sportcraft” or the “Company”).

Sportcraft is a wholly owned subsidiary of Sportcraft Ltd. (“Sportcraft US”). On December 30, 2011, Sportcraft US voluntarily assigned itself into bankruptcy in the US, pursuant to Chapter 7 of the United States Bankruptcy Code and a Chapter 7 Trustee was appointed.

In accordance with the provisions of the BIA, a Notice and Statement of the Receiver was mailed to all known creditors of the Company on March 14, 2012.

Status as at March 4, 2013

On March 1, 2013, the Court issued an order approving the Receiver’s Second and Final Report as filed and discharging PwC as Receiver.

Status as at February 25, 2013

On February 13, 2013, the Receiver filed its Second and Final Report (“Final Report”) to the Court to:

1. provide the Court with information in respect of:
   1. the Receiver’s activities from the date of the First Report to the date of the Final Report;
   2. the Receiver’s Statement of Receipts and Disbursements from the Date of Appointment to January 31, 2013 (“R&D”); and
2. seek an order of the Court:
   1. approving the Final Report and the actions and activities of the Receiver;
   2. approving the Receiver’s R&D for the receivership proceedings;
   3. approving the fees and disbursements of the Receiver and its legal counsel, Fasken Martineau DuMoulin LLP;
   4. authorizing and directing the Receiver to pay the Outstanding Disbursements (as defined in the Final Report);
   5. authorizing and directing the Receiver to distribute all remaining proceeds realized from the sale of the Property, if any, to the Trustee; and
   6. declaring that PwC has duly and properly discharged its duties, responsibilities and obligation as as the Receiver and discharging and releasing the Receiver from any and all further obligations as Receiver of Sportcraft Canada.

A motion will be heard on March 1, 2013.

Status as at April 5, 2012

On April 5, 2012, the Court granted an order authorizing and directing the Receiver to distribute to SunTrust Bank the balance of the funds in its hands, provided that (i) any amount so distributed shall not exceed the outstanding indebtedness owed to SunTrust at the time of the distribution, and (ii) the Receiver maintains a reserve for costs of the receivership and potential priority payables.

Status as at March 28, 2012

On March 28, 2012, the Receiver filed its first report to the Court (the “First Report”) to provide information regarding the request made by SunTrust Bank (“SunTrust”) on the application for the Appointment Order that the Receiver be authorized and directed to distribute funds to SunTrust and the results of the Receiver’s review of the validity and enforceability of the security held by SunTrust. The First Report also contains information regarding (i) the Receiver’s activities from the date of appointment; (ii) the Receiver’s statement of receipts and disbursements to March 27, 2012; and (iii) the Receiver’s sale of Remaining Inventory (as defined in the First Report).

A motion will be heard on April 5, 2012.

This Web site will be updated as information becomes available.

For more information, please contact: Donna Smith, Telephone: +1 416 941 8383 ext. 14288, or via Email.