A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a “reorganization” bankruptcy.
Usually, the debtor remains “in possession,” has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money.
According to a NewAge press release:
NewAge, Inc. (Nasdaq: NBEV) (the “Company”), the Utah-based direct-to-consumer (D2C) organic and healthy products company, today announced that on August 30, 2022 the Company and certain of its subsidiaries, Ariix LLC, Morinda Holdings, Inc., and Morinda, Inc. (collectively, the “Debtors”), each filed a voluntary petition for relief under chapter 11 (“Chapter 11”) of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”), thereby commencing Chapter 11 cases to facilitate a value-maximizing sale process.
The Company has determined that the Chapter 11 process is the most expeditious way to pursue a strategic transaction and protect and preserve value for all stakeholders.
The Company, with the help of its advisors, has secured a commitment for a “debtor in possession” financing facility of $16.0 million, subject to court approval.
This capital, together with revenue generated from ongoing operations, will provide liquidity to