Merisant Files for Bankruptcy Protection
Merisant Company and its subsidiaries will continue normal operations court approves $20 million debtor-in-possession financing.
15/01/09 Merisant Worldwide, Inc., a global leader in tabletop sweeteners, announced that the United States Bankruptcy Court for the District of Delaware has approved all “first-day motions” that Merisant submitted, allowing the company to continue to operate its business in a normal manner.
The customary First-Day Motions that the Court approved gives Merisant authorization to:
- Incur and deploy $4 million of its $20 million debtor-in-possession (DIP) financing facility, which is being provided by Wayzata Investment Partners (the majority holder of its 9 ½% senior subordinated notes). This additional liquidity will ensure that Merisant has adequate liquidity to operate while it restructures its debt. The remainder of the $20 million will become available after entry of a final order on the DIP facility, scheduled for February 5th;
- Maintain its existing cash management system;
- Pay certain pre-filing employee wages and otherwise maintain employee benefits; Fulfill certain pre-filing vendor obligations, including all obligations owed to its shippers and storage facilities;
- Maintain utility services; Pay certain outstanding taxes;
- Honor its customer programs in the ordinary course of business.
In addition to the pre-filing relief granted by the Court, Merisant will be able to use its existing and newly drawn cash to pay its post-filing obligations in the ordinary course and support the launch of PureVia, the company’s new all-natural, zero-calorie sweetener.
