Health & Nutrition Systems Files Chapter 11Health & Nutrition Systems Files Chapter 11
November 8, 2004
Health & Nutrition Systems Files Chapter 11
WEST PALM BEACH, Fla.
TheBoard of Directors of Health & Nutrition Systems International Inc.(AMSE:HNNS) announced the company has filed for protection under Chapter 11 ofthe U.S. Bankruptcy Code. The company is presently developing a reorganizationplan that will be submitted to the court for approval.
The announcement follows the companys earlier declarationthat its former chief executive officer (CEO) and current HNNS employee anddirector, Christopher Tisi, would step down to consider and possibly facilitatesubmission of a stalking horse bid to acquire substantially all the assets ofthe company in the event HNNS sought Chapter 11 protection. Since the filing,HNNS entered into an asset purchase agreement with Tisis company, TeeZeeInc., which has agreed to serve as the primary bidder for HNNSs main businessoperations.
Under the terms of the agreement, TeeZee Inc. will acquiresubstantially all the assets of HNNS in exchange for $2.28 million consisting ofa cash payment of $350,000 and the assumption of approximately $1.9 million ofHNNSs debt. If the sale occurs, the proceeds will be used by the company toidentify and facilitate its entry into a different line of business.
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