Twin Labs filed Chapter 11 and has reached an agreement to sell all its assets MI based company – Ideasphere Inc. for 65 million dollars in cash.
Twin labs sales have declined 20% since they began discontinuing all ephedera-containing products.
· Hauppauge, NY, September 4, 2003 – Twinlab Corporation (OTCBB: TWLBE), Twinlab Laboratories Inc. and Twin Laboratories (UK) Ltd. (collectively “Twinlab” or the “Company”) announced that, to address certain financial and debt related issues, the Company has commenced today voluntary cases under chapter 11 of the Federal Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. The Company remains in possession of its assets and properties, and continues to operate its businesses and manage its properties as a debtor-in-possession pursuant to sections 1107(a) and 1108 of the Federal Bankruptcy Code.
The Company also announced today that it has entered into an asset purchase agreement with Ideasphere, Inc. of Grand Rapids, Michigan pursuant to which the Company and certain of its subsidiaries will sell substantially all of their assets for a purchase price of $65 million in cash, the assumption of $3.7 million of employee and related liabilities of the Company, and the assumption of substantial amounts of the Company’s executory contracts and unexpired leases. The sale is being conducted pursuant to section 363 of the Federal Bankruptcy Code and, as such, remains subject to mandatory bankruptcy procedures and the approval of the Bankruptcy Court. The sale is also subject to satisfaction of other standard and customary conditions, including the receipt of regulatory approvals.
The Company has filed papers seeking approval from the Bankruptcy Court for a new $35 million debtor-in-possession financing facility to be provided by The CIT Group/Business Credit, Inc., as agent for a lender group. The new facility will provide an immediate source of funds to the Company, enabling it to satisfy the post-petition obligations associated with the daily operation of its business, including the timely payment of raw material purchases, manufacturing, distribution and shipping costs, employee wages and other obligations. All Twinlab facilities and the manufacturing and distribution plant remain functional and the Company is conducting normal business operations.
Twin labs sales have declined 20% since they began discontinuing all ephedera-containing products.
· Hauppauge, NY, September 4, 2003 – Twinlab Corporation (OTCBB: TWLBE), Twinlab Laboratories Inc. and Twin Laboratories (UK) Ltd. (collectively “Twinlab” or the “Company”) announced that, to address certain financial and debt related issues, the Company has commenced today voluntary cases under chapter 11 of the Federal Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. The Company remains in possession of its assets and properties, and continues to operate its businesses and manage its properties as a debtor-in-possession pursuant to sections 1107(a) and 1108 of the Federal Bankruptcy Code.
The Company also announced today that it has entered into an asset purchase agreement with Ideasphere, Inc. of Grand Rapids, Michigan pursuant to which the Company and certain of its subsidiaries will sell substantially all of their assets for a purchase price of $65 million in cash, the assumption of $3.7 million of employee and related liabilities of the Company, and the assumption of substantial amounts of the Company’s executory contracts and unexpired leases. The sale is being conducted pursuant to section 363 of the Federal Bankruptcy Code and, as such, remains subject to mandatory bankruptcy procedures and the approval of the Bankruptcy Court. The sale is also subject to satisfaction of other standard and customary conditions, including the receipt of regulatory approvals.
The Company has filed papers seeking approval from the Bankruptcy Court for a new $35 million debtor-in-possession financing facility to be provided by The CIT Group/Business Credit, Inc., as agent for a lender group. The new facility will provide an immediate source of funds to the Company, enabling it to satisfy the post-petition obligations associated with the daily operation of its business, including the timely payment of raw material purchases, manufacturing, distribution and shipping costs, employee wages and other obligations. All Twinlab facilities and the manufacturing and distribution plant remain functional and the Company is conducting normal business operations.
