SCOTTSDALE, Ariz. – Legal documents filed at the end of June show the bankruptcy process behind electronic-cigarette maker NJOY drawing to a close, according to officials with the newly emerged entity, NJOY LLC.
Court papers filed in Delaware bankruptcy court on June 28 concerning the “old” NJOY Inc. (vs. the “new” NJOY LLC) show a request on behalf of unsecured creditors to change the status of the filing from Chapter 11, which is a reorganization classification, to Chapter 7, which is liquidation. The documents said no real assets remain within NJOY Inc. aside from claims against the company and its officers.
“It shows that the process is winding down,” said Jeff Weiss, general counsel and senior vice president of government affairs for NJOY LLC. “NJOY [LLC] is out of bankruptcy with the same products and trademarks. The company is capitalized and detached from the bankruptcy process.”
NJOY Inc. initially filed for Chapter 11 bankruptcy on Sept. 16, 2016, citing new-product woes and onerous regulations from the U.S. Food and Drug Administration. Weiss told CSP Daily News that NJOY LLC retained funding and bought the assets of NJOY Inc. this past February for $35 million.
“Today marks a fresh financial start for the NJOY brand,” Douglas Teitelbaum, chairman and CEO of NJOY LLC, said in a press release published Feb. 23. “With the completion of this acquisition and capital raise, we now have ample liquidity and can focus on delivering for our customers.”
Photo Credit: Lindsay Fox
[Editor’s note: Click here for an image link.]