Naturade Receives Court Approval for Reorganization Plan
BREA, CA -- (MARKET WIRE) -- March 06, 2007 -- Naturade, Inc. (PINKSHEETS: NRDCQ) announced today that its plan of reorganization under Chapter 11 has been approved by the United States Bankruptcy Court. The reorganization plan received virtually unanimous support from the Company's creditors and shareholders, as well as strong support from Naturade's lenders and the Company's Creditor Committee. The Company expects to emerge from Chapter 11 before the end of March 2007 and will remain a fully reporting publicly traded company.
The reorganization plan provides for a recapitalization of the Company with Naturade's controlling shareholder, Redux Holdings, Inc. (PINKSHEETS: RDXH) providing a substantial cash infusion to meet Naturade's future working capital needs. In addition to a comprehensive debt restructuring, the reorganization plan features an equity allocation rarely observed in companies emerging from bankruptcy. Of note, the plan allows for the retention of an equity interest by existing shareholders in the Company.
"The reorganization process works," stated CEO Richard Munro, an experienced reorganization specialist. "Naturade will emerge from Chapter 11 as a stronger, more financially sound business. With the recapitalization of Naturade, we will have the financial resources to meet the growing demands of consumers for natural and health food products. Naturade has a strong legacy built over 8 decades of product innovation in consumer nutritional supplements and was in the health food business long before the term 'health food' was even invented."
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"We strive to continually enhance our reputation as an outstanding supplier of natural nutritional supplements and wellness products, and to maintain the support of our vendors and customers," concluded Munro. "We plan to launch innovative new products in 2007 and beyond to build on our consumer brand strengths and 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. The approved plan of reorganization can be reviewed at www.winthropcouchot.com/client_files.php.
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 business 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/rdxh.html.
"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.
