PURCHASE, N.Y. — Nutrition 21 on Friday announced that it has filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code.
The company does not have sufficient cash to meet a required redemption of its Series J 8% Convertible Preferred Stock on Sept. 11, 2011, for $17.8 million.
Nutrition 21 plans on selling all, or substantially all, of its assets. During the pendency of Nutrition 21's Chapter 11 proceedings, the company will remain in possession of its assets and will continue to operate its business.
Nutrition 21 in January sold substantially all of the assets of its direct response and retail businesses to Nature's Products, based in Sunrise, Fla. The purchase price was approximately $3.2 million plus the assumption of designated liabilities.
“We entered into this transaction to focus our limited financial resources on our profitable ingredients business,” stated Michael Zeher, Nutrition 21 president and CEO, at the time of the January sale.