After its declared intent to acquire 100% of Zurvita’s shares earlier this year, Zinzino negotiated a purchase of Zurvita’s assets through a Chapter 11 proceeding. Zinzino will now provide debtor-in-possession (DIP) financing to Zurvita following its official Chapter 11 filing last week.
As a financier to Zurvita, Zinzino has also made an offer to acquire the company’s assets in what is called a “stalking horse bid.” If accepted, the DIP loan will convert into part of a debt-settled purchase price to be determined in accordance to the terms of the Chapter 11. If an outside bid is accepted instead, Zinzino’s loan will be repaid and costs will be reimbursed.
“After considering multiple options for the company and under the guidance of our attorneys and third-party advisors, we feel this presents the best opportunity to continue Zurvita’s mission, deliver the highest quality products, and provide continuity for our staff and consultants,” said Jay Shafer, Zurvita CEO and Co-founder. “We are excited to see what the future holds for Zurvita.”
