Naturade Wins Reorganization Approval from Bankruptcy Court

April 9, 2007

1 Min Read
Naturade Wins Reorganization Approval from Bankruptcy Court

BREA, Calif.—Under Chapter 11 protection since August 2006, Naturade Inc. (PINKSHEETS: NRDCQ) reported March 6 U.S. Bankruptcy Court approved its reorganization plan, which received virtually unanimous support from the company’s creditors and shareholders, as well as strong support from its lenders and the Naturade Creditor Committee. Naturade ( expected to emerge from Chapter 11 by the end of March 2007 and stated it will remain a fully reporting publicly traded company.

The reorganization plan includes a recapitalization with Naturade’s controlling shareholder, Redux Holdings Inc. (PINKSHEETS: RDXH) providing a substantial cash infusion to meet Naturade’s future working capital needs. Besides a debt restructuring plan, the restructuring will involve an equity allocation rarely observed in companies emerging from bankruptcy. Further, the plan allows for the retention of an equity interest by existing shareholders in the company.

“The reorganization process works,” stated Richard Munro, chief executive officer (CEO) of Naturade and an experienced reorganization specialist, who said Naturade will emerge from Chapter 11 as a stronger, more financially sound business.

“With the recapitalization of Naturade, we will have the financial resources to meet the growing demands of consumers for natural and health food products. Naturade has a strong legacy built over eight decades of product innovation in consumer nutritional supplements and was in the health food business long before the term ‘health food’ was even invented.”

He added Naturade stands by its reputation and plans to launch innovative new products in 2007 and beyond to build on its consumer brand strengths and highly valued retailer relationships.

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