07.01.07
According to an article in the Associated Press, Nellson Nutraceutical Inc., Irwindale, CA, may be heading to the bankruptcy auction block in July. The article says while no lead bidder has been named for the diet food maker, a bankruptcy judge has approved a schedule that calls for a July 18th auction if more than one offer to buy the company comes in. “Bankruptcy has been rough on Nellson, which makes diet bars and powders under various brand names. Kraft Foods, Slim-Fast, Weight Watchers and Jenny Craig either stopped doing business with Nellson or refused to sign up for new products from the company after it filed for Chapter 11 protection,” the AP article said. “Earnings for 2006 came in at about $37.1 million—$6 million less than leaders of equity stake holder Fremont Capital had expected. Estimates in court papers say it would take about $355 million to pay off Nellson’s secured creditors and another $10 million to cover unsecured debt.”
