Bankruptcy 11 Sale Of Xyience Inc Energy Drink Maker For $15 Million

Xyience Energy DrinkBankruptcy sale of Xyience, Las Vegas energy drink maker, approved for $15 million this week to Manchester Consolidated. Bad news, unsecured creditors of Xyience will lose all of their investment in the once rockstar energy drink arena.

Last minute bidding within 90 minutes of the Chapter 11 sale, included an offer by a New Zealand company for $15.5 million all cash. This offer would have been considerably financially better for the drink manufacturer because of the cash but they missed the court’s deadline.

Because their debt was over three times their purchase price only a portion of the secured debt will be covered by the bankruptcy sale.

Manchester Capital from Canada, is affiliated with Manchester Consolidated.

Xyience and their energy drink was a large sponsor of the UFC mixed martial arts based Las Vegas, Nevada which have financial strings to Station Casinos.

Day to day operations by Xyience has had financial assistance by a two loans equaling $14.7 million in the past five months. The loan documents included a clause to give Zyen the ability to have their loan paid before other creditors. Zyen is controlled by the same owners of Station Casinos.

Winner of the approved bankruptcy 11 bid, Manchester Consolidated, assumes $14.8 million in debt with $200,000 cash down.

The legal battles don’t stop there. This week unsecured creditors of Xyience filed in federal court a $14.8 million lawsuit for their repayment. Source: Review Journal

Bankruptcy 11 sale of Xyience Inc energy drink maker approved for $15 million.

Tags: , , , , , | E-Mail This Post/PageEMail This Post | Print This Post/PagePrint This Post |

Comments are closed.