Merisant Worldwide Inc. Files for Chapter 11
Posted on Dec 17, 2009 1:28pm PST
On Wednesday, Merisant Worldwide Inc. filed its
Chapter 11 bankruptcy reorganization plan and received court approval. Merisant, a
Chicago-based company, is the maker of the artificial sweetener, Equal.
In its bankruptcy plan, the company said that it could emerge from bankruptcy by January 8th. A year ago, the company reported that it filed for Chapter 11 because its sales had dropped, its debt had increased and the global credit crisis impacted its growth.
The reorganization plan states that Merisant's debt will be cut to $147 million from $567 million. This reduction will lead to its cash interest being cut from $36 million to $11 million annually. As part of the reorganization, Wayzata Investment Partners, a private equity firm, will become majority and controlling shareholder of Merisant Worldwide Inc.
Prior to the reorganization, Merisant was primarily owned by private equity firm, Pegasus Capital Advisors.
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