Nature’s Gate files for bankruptcy
Natural Products Group filed for bankruptcy at the end of last month although it expects to exit chapter 11 in between 45 and 50 days.
The company was created in 2004 in order to purchase Levlad and its subsidiary Arbonne International, a direct selling personal care products company.
It also holds the Nature’s Gate brand, which offers a range of organic and natural skin care and hair care products.
According to the company, lenders holding more than 90 percent of its debt have voted in favor of the company’s proposed restructuring plan, hence the hope of a swift exit from the proceedings.
Reduce debt obligations by 80 percent
According to the company, the proposed plan will reduce its outstanding debt obligations by more than 80 percent and materially enhance the Company’s financial position.
“This is a major milestone in our strategy to position the Company for continued growth and increased profitability,” said CEO of the company, Kay Napier, in a statement.
“I am deeply gratified by the enthusiastic support of our lenders to reduce the Company’s debt substantially and increase our financial flexibility,” she added.
The company will also be taking on a loan of up to $20m during the bankruptcy period in order to allow the company to continue functioning normally.
Natural Products Group maintains that under the restructuring plan all Arbonne and Levlad employees will continue to receive their usual pay and benefits.
