In court filings, Jolt said it agreed to buy 90 million 23.5-oz. resealable cans from Rexam between January 2007 and December 2009; however, because of the recession, the company has been able to buy just 27 million cans to date.
Jolt said it has to launch a nonresealable cans to compete in the market as the resealable cans supplied by Rexam cost three times [image-nocss] the price of nonresealable cans.
The Rochester, N.Y.-based company added that it is unlikely to secure additional capital to pursue this strategy because of Rexam's claims and asserted liabilities.
In its Chapter 11 filing, Jolt, which does business as Wet Planet Beverages, listed assets and debt in the range of $1 million to $10 million. Rexam, which is owed about $2.1 million, was named as the largest unsecured creditor.
Jolt Cola was created in 1985 by C.J. Rapp as a highly caffeinated drink and is sold across the United States, Canada and Europe.
The case is In re: The Jolt Co Inc., U.S. Bankruptcy Court, Western District of New York, No. 09-22531.
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