Cat House

[Sharktnk]

Here's a refresher ...

Javo Beverage Sets Confirmation After Settlement

Link: http://news.businessweek.com/article.asp?documentKey=1376-LI9T741A1I4I01-7N8G60JDUFVT8IBFVIT7TOQ9BD

Javo Beverage Co., a provider of concentrated coffees and teas for beverage dispensers, scheduled an April 28 confirmation hearing for approval of the Chapter 11 plan after the bankruptcy judge approved the explanatory disclosure statement last week.

Javo filed under Chapter 11 in late January with an agreement for current investor Coffee Holdings LLC to become the owner. As revised, the plan would give Coffee Holdings 90 percent of the equity in exchange for $3.2 million in financing for the Chapter 11 case, $6 million in senior notes and $12.1 million in subordinated notes of the operating company.

The plan for unsecured creditors and subordinated noteholders of the operating company was improved after negotiations with the official creditors' committee.

General unsecured creditors with $2.5 million in claims are now to be paid in full with interest in quarterly installments over one year. Holders of $11.1 million in subordinated notes of the operating company are to receive 10 percent of the new stock plus an $800,000 note, for a 19.9 percent recovery.

Holders of subordinated notes of the holding company receive nothing.

Coffee Holdings owns 23 percent of the existing common stock, according to court filings.

Javo, based in Vista, California, listed assets of $14.7 million against debt totaling $26.7 million. Sales of $19.6 million for the three quarters ended Sept. 30 resulted in a $3.6 million loss from operations and an $8 million net loss. The business was never profitable, court papers said.

Most of the debt is attributable to three note issues. There is another $2.4 million in accounts payable, according to a court filing.

The case is In re Javo Beverage Co. Inc., 11-10212, U.S. Bankruptcy Court, District of Delaware (Wilmington).

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=61421239&txt2find=holdings