The restructuring transaction embodied in the [image-nocss] plan will significantly deleverage the company's capital structure and provide the working capital the company needs to continue to service its customers and build its business.
Holdings will provide debtor in possession financing of up to $3.15 million, allowing the company to continue its operations, and additional exit financing to properly capitalize the company that today services thousands of beverage locations in the United States.
In addition to the filing of the Chapter 11 case, Javo has filed for the court's consideration several "first-day" motions on an expedited basis, concerning its employees, critical vendors and customer pricing and other programs in order to be able to continue to operate in the ordinary course through the bankruptcy proceeding.
"This is an unfortunate but necessary means of rightsizing our balance sheet and capitalization so that our underlying business can thrive. We want to assure all of the customers, suppliers and business partners who have supported us to this point that we intend to continue to supply quality products and, in general, operate the business in a normal fashion during the bankruptcy proceedings," said Stan Greanias, CEO of Vista, Calif.-based Javo Beverage.
The company expects confirmation of the plan of reorganization by May 1, 2011.
Click herefor additional details on the company's restructuring website.
Javo Beverage is leading manufacturer of coffee and tea-based dispensed beverages, drink mixes and flavor systems. It has commercialized a proprietary brewing technology that yields fresh brewed coffees and teas that are flavorful, concentrated and stable, with applications in the foodservice, food manufacturing and beverage industries. For foodservice operators, Javo makes it possible to serve hot coffees and cold specialty coffee beverages from convenient dispenser-based systems. Javo also assists food and beverage processors seeking "authentic and robust" coffee and tea flavors through its development and supply of customized ingredients for packaged foods and ready-to-drink beverages. It supplies a growing list of national and international foodservice operations, specialty coffee retailers, restaurant chains and food manufacturers.
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