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Natura to restructure after getting $7.8M in new financing PDF Print E-mail
Written by Michael J. Knell   

CAMBRIDGE, Ontario (27 December 2011) - Specialty mattress producer Natura World has filed a Notice of Intention (NOI) under the Bankruptcy & Insolvency Act to restructure its business after receiving $7.8 million in new financing from its lender, Callidus Capital of Toronto.

In a statement, the privately held company said its "new business plan will create a unique opportunity for Natura to solidify its position as the leading natural and organic sleep products brand throughout the world."

The Toronto-based A. Farber & Partners has been named trustee.

"The effect of the NOI is that it provides an initial 30-day stay of proceedings over all amounts owing to creditors effective December 16, 2011 (i.e. all amounts outstanding at December 16, 2011 and prior) whilst the company formulates a proposal to its creditors," Farber said in a statement posted on its web site.

Farber also stressed Natura World is not bankrupt, but has availed itself of a process that provides protection from creditors while it restructures its financial affairs. The company has 30 days from December 16 to submit its proposal.

In its statement, Natura said there will be no disruption of service to its customers, vendors or suppliers, maintaining its improved cash position should enable it to improve relationships with these stakeholder groups.

Neither Natura World USA - its Texas-based operation - nor its NexGel subsidiary is affected by the filing.

The company said it expects the reorganization process to conclude expeditiously.

Under the new business plan, Natura World president Ralph Rossdeutscher, who founded the company in partnership with his father, Harry, in 1994, will maintain his majority ownership stake in the company.

"The decision to file this reorganization plan was made to strengthen our business and to solidify Natura as the leading natural and organic sleep products brand in the world. This strong infusion of capital will strengthen our current business and position the company for dynamic future growth," said Rossdeutscher.

He explained the NOI process was necessary to enable Natura to shed the debt it amassed three years ago just prior to the onset of the recession in the United States, the company's largest market. At the time, Natura was making significant investments in new products, equipment and technologies.

"While we have reduced operating expenses significantly over the past two years and our current business run rate is actually profitable, we could not fully right the ship and pay down the debt we amassed several years ago without going through this reorganization process," Rossdeutscher added.

Natura World is expected to participate at the upcoming Canadian Home Furnishings Market in Toronto and the winter 2012 edition of the Las Vegas Market at the end of the month.

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