Merisant receives court approval for first-day motions
January 14, 2009
by Eric Schroeder
CHICAGO — Merisant Worldwide, Inc., which filed for Chapter 11 bankruptcy Jan. 9 in the U.S. Bankruptcy Court, District of Delaware, said the court has approved all first-day motions, setting the stage for the company to continue to operate its business in a normal manner.
As part of the motions, the bankruptcy court has given Merisant authorization to incur and deploy $4 million of its $20 million debtor-in-possession financing facility. The additional liquidity is expected to ensure that Merisant has adequate liquidity to operate while it restructures. The remainder of the $20 million is expected to become available after entry of a final order on the DIP facility, scheduled for Feb. 5.
In addition to the pre-filing relief granted by the court, Merisant said it would be able to use its existing and newly drawn cash to help support the launch of PureVia, the company’s new all-natural, zero calorie sweetener.