Nature’s Gate Parent Files For Chapter 11

The parent company for Nature’s Gate and direct sales company, Arbonne International, filed for Chapter 11 as part of a plan to restructure and dramatically cut its debt. The company owns Arbonne, as well as Levlad and Nature’s Gate. According to a January 27 announcement, the company received the OK from holders of more than 90% of its bank debt to restructure and cut about 80% of its debt. The restructuring is expected to happen within 45- 60 days.

The company has enough cash to manage daily operations and was granted a new credit facility of $20 million to support needs during the restructuring. It will have access to $10 million when the Bankruptcy Court approves it, followed by another $5 million when the court approves the plan and the last $5 million the lenders agree to the plan. White & Case is the firm’s legal advisor and Blackstone is its financial advisor.