NewAge, Inc. announced that it has filed for a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The company’s subsidiaries Ariix LLC, Morinda Holdings, Inc. and Morinda, Inc. also each filed this voluntary petition for relief, commencing Chapter 11 cases to facilitate “a value-maximizing sale process.”
The company secured a “debtor in possession” financing facility of $16 million and plans to use this capital, together with revenue generated from ongoing operations, to provide liquidity to support the company through the sale process.
The management team will continue to operate the business as “debtors in possession” and are seeking approval of a variety of “first day motions containing customary relief intended to enable the company and its subsidiaries to continue operations in the ordinary course.” The company emphasized that it intends to pay vendors and partners under customary terms for goods and services and to provide employees with their usual pay and primary benefits.
