Naturade, Inc. Files for Reorganization Under Chapter 11
Market Wire, September, 2006
Naturade, Inc. (OTCBB: NRDC) announced today that it has filed for reorganization under Chapter 11 of the Bankruptcy Code, and it will submit a Plan of Reorganization next week to restructure its debts to its creditors. Laurus Master Fund has agreed to continue their revolving line of credit (DIP) during Chapter 11. Naturade, Inc. is majority owned by Redux Holdings, Inc. (PINKSHEETS: RDXH).
"Naturade will file their Plan of Reorganization next week to effect an expedited emergence from Chapter 11 within 90 to 120 days," according to Naturade's new CEO Richard Munro, who took over as CEO of the Company concurrent with Redux Holding's acquisition of a majority control of Naturade last month. Mr. Munro is an experienced reorganization specialist, who will run Naturade during the reorganization process, and will be responsible for overseeing the implementation of its reorganization plan.
"Chapter 11 provides to Naturade a vehicle for resolving its problems brought on by an under-financed and aggressive acquisition program," stated Munro. "We believe that we have made this difficult but necessary decision to help ensure that Naturade will have the financial strength to grow and prosper."
Munro added that, "Naturade has a solid management team, strong sales, great products, and loyal customers. Naturade already has funding in place to continue its normal business operations during the reorganization, with absolutely no disruption to marketing, product development, and manufacturing. We will continue our plans to launch innovative new products in early 2007 and continue to build our highly valued retailer relationships."
About Naturade, Inc.
Founded in 1926, Naturade is a leading marketer of scientifically supported natural products formulated to improve the health and well being of consumers. Naturade products can be found in health food stores and natural foods supermarkets as well as supermarkets, mass merchandisers, club stores and drug stores.
Naturade is represented in its reorganization by Robert E. Opera of Winthrop Couchot, PC, a Newport Beach-based law firm that has represented many prominent companies that have successfully emerged from reorganization.
About Redux Holdings, Inc.
Redux Holdings acquires the assets of companies and isolates, recombines and manages those assets to increase their value and develop profitable strategic options. The Company is distinguished by the extensive experience of its personnel in quickly identifying, analyzing and stabilizing these businesses opportunities and effecting rapid turnaround and asset monetization.
For additional information on Redux Holdings, Inc., visit the company's website at www.reduxholdings.com . Investor information, including an investor fact sheet, is available for download at www.firstcapitalinvestors.com/ .
"SAFE HARBOR"
This press release contains forward-looking statements within the definition of Section 27A of the Securities Act of 1933, as amended and such section 21E of the Securities Act of 1934, amended. These forward-looking statements should not be used to make an investment decision. The words 'estimate,' 'possible' and 'seeking' and similar expressions identify forward-looking statements, which speak only as to the date the statement was made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks.
Contact: Investor Relations First Capital Investors, Inc. 321-221-2910 Email Contact
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