Former Targus Files Chapter 11 Bankruptcy

by San Antonio Attorney

Mobile accessory maker Targus, recently filed for Chapter 11 bankruptcy on Feb. 9 to aid the company in closing down.

The remaining assets of Targus are under the Chapter 11 protection through the bankruptcy court in Manhattan.

Guggenheim Partners and Mudrick Capital made the foreclosure move of the laptop and iPad case maker.  They also purchased the company’s name along with the manufacturing assets.  The newly structured company is expected to run normal operations.

The remnants of Targus, named TGHI Inc, are expected to liquidate under the prearranged plan.  It is basically an empty shell with no staff and operations, according to court papers.

Christopher Layden, TGHI President, stated that laptop sales have declined due to the evolution of tablets and smartphones, thus decreasing the demand for laptop accessories.  Heavy debt and online shopping were other factors.

Michael Hoopis, company President, said that Targus now has an improved balance sheet and a better financial foundation.  With these strong assets, growth in capitalization is improved and evolving needs of the workforce are provided.

Restructured in 2009, it converted $125 million in total debt into equity and new bonds.  The plan was entrusted to private equity firms such as Carlyle Group and York Street Capital Partners.

Kramer Levin Naftalis & Frankel served as their legal advisor since late 2014, in order to handle its restructuring.  They also pursued a sale or refinancing that would pay off its lenders in 2015.

PJT Partners, formerly known as Blackstone Advisory Partners purchased Targus and held two final bids from more than 80 parties that initially expressed interest.   But these bids didn’t work out as expectations went low in what ws required to pay off debts.  The debts allegedly cost more than $205 million in dollars.

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