NewAge files Chapter 11 bankruptcy, lines up $16 million DIP facility

By Sarah Lizee

Olympia, Wash., Aug. 30 – NewAge, Inc. filed Chapter 11 bankruptcy on Tuesday in the U.S. Bankruptcy Court for the District of Delaware to facilitate a sale, according to a press release.

The company has secured a commitment for a $16 million debtor-in-possession facility.

NewAge is also seeking court approval of a stalking horse asset purchase agreement with an entity called DIP Financing, LLC. The transaction is subject to court approval, as well as any higher or better offers as part of the ongoing auction process.

Terms of the DIP financing and stalking horse agreement were not available when the press release was issued.

The company is requesting approval of various first-day motions in order to continue operating in the ordinary course.

The debtors intend to pay vendors and partners under customary terms for goods and services received on or after the filing date and to pay employees in the usual manner and continue their primary benefits without disruption.

In its petition, the company listed $310.9 million in assets and $149.45 million in liabilities.

Its largest unsecured creditors are TCI Biotech LLC, based in American Fork, Utah, with a $2.5 million trade debt claim, Zennoa, LLC, based in Island Park, Idaho, with a $1.63 million trade debt claim, Miller & Chevalier Chartered, Inc., based in Washington, D.C., with a $1.43 million professional services claim, and Deloitte & Touche LLP, based in Salt Lake City, with a $1.32 million professional services claim.

Greenberg Traurig, LLP is the debtor’s bankruptcy counsel. SierraConstellation Partners LLC is the company’s financial adviser.

The Midvale, Utah-based direct-to-consumer organic and healthy products company filed bankruptcy under Chapter 11 case number 22-10819.

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