Note: Previous and ongoing coverage of Tough Mudder's difficulties in 2020 can be found here – Who Will Save Tough Mudder? Will TM Disappear in 2020?

[February 10, 2020] United States Bankruptcy Court, Delaware: 


Overview with analysis from our legal expert:

This is a request to the court-appointed trustee of Tough Mudder Incorporated for Spartan to purchase all Tough Mudder assets. A meeting with the trustee in court is scheduled for 2/25 to approve or refute the sale, with an objection deadline set for Thursday, February 20 at 4:00 pm ET.

The purchase price is approximately $700,000 plus the clearing of all TM debt (estimated at 7.5 to 10 million)

From the Notice of Assumption: “Assumed Liabilities. The Buyer will assume the Assumed Liabilities, which include (i) Seller’s obligations to natural persons holding event registrations associated with an Assumed Event, (ii) for each of the Excluded Events, Buyer will exchange any natural person’s event registration for two comparable Buyer event registrations to occur on or before December 31, 2021, (iii) for every 2020 Tough Mudder Season Pass held by a natural person, Buyer will exchange their 2020 Tough Mudder Season Pass for two consecutive years (i.e., 2020-2021) of a comparable Buyer season pass, (iv) all Liabilities of Seller under each Assumed Contract, in each case, arising after the Closing (v) all Cure Claims, (vi) all Liabilities arising out of Buyer’s use of the Acquired Assets by Buyer after the Closing to the extent such Liabilities arise solely out of any matter, occurrence, action, omission or circumstance that first occurred or existed after the Closing.”

If the sale is approved by the court on 2/25 the sale will become final on 2/28. There will still be a meeting in March to address the payment of any outstanding contracts and the repayment of the 7.5 to 10 million)

(i), (ii), and (iii) above appear to be referring to Spartan offering multiple Spartan (or Spartan-controlled Tough Mudder) registrations for holders of 2020 Tough Mudder registrations or season's passes.

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