October 21st, 2009 by Reed Allmand 
According to an article in the Business Journal, True Temper Sports Inc. has filed for Chapter 11 bankruptcy protection. The company is filing a pre-packaged bankruptcy petition with the approval of its secured lenders, bondholders and shareholders.
The article said:
“The filing is considered to be “a mechanism to implement the agreed upon balance sheet restructuring, and will not impact the fundamental business of True Temper or its day-to-day operations,” according to a company statement.”
The True Temper Sports bankruptcy is designed to reduce the company’s debt from $275 million to less than $40 million. True Temper Sports hopes to emerge from bankruptcy in the next 60 days. That sounds like great deal, just two months in bankruptcy and then emerge from bankruptcy with only a fraction of the debt it had before. What would you do if you could have just a fraction of the debt you have today, or no debt in just a couple of months? Save for retirement, get health insurance or buy a home? Many debtors feel guilty about dumping debt during bankruptcy; but shrewd businesses understand that bankruptcy is a tool like any other, designed to help them succeed in the long-term. True Temper Sports took an honest assessment of their financial position and determined that is was time to file bankruptcy if they in fact wanted to survive, not only that; but their creditors agreed. Why would any creditor agree to a bankruptcy filing? They may agree to bankruptcy because priority creditors can get paid first if non-priority debts are discharged or reduced during a bankruptcy. For example, student loan lenders may be glad to have a debtor file bankruptcy if it frees up more money for them. Sometimes bankruptcy can benefit creditors. That’s why some creditors force business/debtors into a bankruptcy filing.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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