Teashi
29-10-2010, 19:34
The Las Vegas manufacturer and distributor of energy drink Xenergy, which sponsors the Ultimate Fighting Championship, has filed for bankruptcy protection amid claims of intimidation and death threats.
Xyience Inc., the energy drink company headquartered at 4572 Hacienda Ave., reported $42.3 million in liabilities and $5.3 million in assets. Xyience sells its energy drink through 230 convenience and grocery stores, mostly in the Southwest.
The voluntary bankruptcy petition, filed on Friday, follows an involuntary petition that was filed Jan. 3 by founder and former CEO Russell Pike and others. The involuntary petition remains pending.
The bankruptcy petitions for Xyience were filed under Chapter 11, which provides protection from creditors while the company reorganizes.
Despite the ominous circumstances, Xyience President Omer Sattar expressed optimism.
"We're excited about the opportunity (to reorganize the company), " he said. "Xyience has a great brand name and has a strong affiliation with the UFC."
The UFC holds mixed martial arts fights. According to bankruptcy papers, UFC is the largest mixed martial arts organization, and mixed martial arts are the second-most popular sporting event for men ages 18 to 34, following the NFL.
A representative for UFC President Dana White declined to make White available for comment and declined comment on behalf of the UFC.
Frank and Lorenzo Fertitta, members of the family that founded Station Casinos, own UFC. They also are creditors of Xyience with $12.5 million in unsecured claims and $5.3 million in secured claims, according to the bankruptcy filing. Attempts to reach the Fertittas on Monday were unsuccessful.
Sattar said the company would have filed for liquidation under Chapter 7 had not it not enjoyed the continued support of the Fertittas. Sattar said Xyience continues as a key UFC sponsor. Xyience signed a $15 million sponsorship agreement with the UFC for 2007.
Sattar said the bankruptcy became necessary when the company was unable to raise $7.5 million more from shareholders.
"Those negotiations, however, were derailed by a campaign of intimidations and threats led by company founder and former CEO Mr. Pike, Terry Cardenas, Ronald Solomon and Rick Klingenberg," he said.
"Associates of Mr. Pike and Mr. Klingenberg made threats of physical violence against Xyience management and board members and, on at least one occasion, showed up uninvited at the home of one member of management," Sattar said in bankruptcy court filings.
"Mr. Klingenberg and his brother David Bergstrom stormed into the Xyience office, cornering (Chief Financial Officer) Michael Levy in an office and refusing to allow Mr. Levy to depart until their demands were met," according to Sattar's filing.
If their mother wasn't paid, Klingenberg and Bergstrom said "somebody was going to ... get killed," Sattar said.
They demanded $20,000 "or else they would return the next day with guys who had a 100 percent collection rate," according to Sattar's filing.
Attempts to reach Pike, Bergstrom and Klingenberg for comment Monday failed.
Xyience was founded in 2004. Sales grew to $20.4 million in 2006, from $109,000 in its first year.
Sattar's filing says the company had difficulty raising money to pay for expansion.
When Pike resigned and tried to sell Xyience stock in California, the state's Department of Corporations issued a desist and refrain order against Xyience, according to court papers.
Sattar said the company has obtained postbankruptcy financing enabling it to pay for a backlog of drinks being kept by the drink maker, Cott Corp. The financing will enable Xyience to avoid losing shelf space to competitors, which would be difficult to regain, he said.
Sattar said Xyience encountered financial difficulties because it spent large sums of money on advertising and promotion but couldn't get the drink distributed in many stores. He hopes to revitalize the company by expanding its distribution to other convenience and grocery stores and by giving away samples at sporting events in hopes of developing new customers.
UFC sponsor files for bankruptcy - Business - ReviewJournal.com (http://www.lvrj.com/business/13967192.html)
Total Pro Sports - Station Casinos has proposed to file for pre-packaged bankruptcy. What does this have to do with MMA you ask? Station Casinos is owned by the Fertitta brothers, the owners of the UFC.
Station Casinos, owned by private equity firm Colony Capital along with Ultimate Fighting Championship (UFC) owners Frank and Lorenzo Fertitta, proposed filing for prepackaged bankruptcy in a deal with lenders as a failing economy and stingy credit market have stifled Las Vegas area gambling profits in a report by Bloomberg.com.
Founded by Fertitta’s father in 1976 as nothing more than a bingo hall, Station now operates 15 off-strip casinos designed for Las Vegas locals and employs roughly 14,000 people.
In addition to the decline in gambling revenue, Las Vegas home prices fell 41 percent through last November after peaking in August 2006. In addition, unemployment in Nevada, once far below the rest of the country, was a staggering 9.1 percent in December, compared with 7.2 percent for all of the U.S.
Hopefully this decision doesn't effect the UFC in anyway. The two companies are separately owned corporations, but a pinch in the casino market will most likely have an effect on the UFC. While the UFC is making strides to become a globalized product, the fact that Las Vegas is home to a large sum of their events can't be overlooked. A vote is due by March 2 on the proposed Station bankruptcy plan.
Total Pro Sports - Are The UFC And Dana White Going Bankrupt? (http://www.totalprosports.com/2009/02/17/are-the-ufc-and-dana-white-going-bankrupt/)
Station Casinos moved one step closer to emerging from bankruptcy intact Friday when a judge approved the sale of 11 casinos, land holdings and American Indian gaming contracts to a group backed by Fertitta Gaming for $772 million.
"Today's outcome means that Frank and Lorenzo Fertitta, the family that founded the company and grew Station Casinos into the most popular locals' casino company, will remain in control of all of our wholly-owned properties, our tribal gaming partnerships, and our land held for future development," Scott Nielson, executive vice president of Station Casinos, said in a statement.
"Everyone at Station Casinos is excited about this outcome and is ready to rededicate themselves to providing the friendly service, great value and overall entertainment experience that made Station Casinos the locals' favorite," Nielson said.
The transactions are expected to close early next year.
The locals gaming company filed for Chapter 11 bankruptcy protection a year ago with about $6 billion in debt.
Bankruptcy Judge Gregg Zive did not need to hold a planned auction Friday because the only other qualified bidder that submitted a letter of intent, Boyd Gaming Corp., dropped out of the auction last week, complaining that the auction process was tilted in favor of insiders. That left the Fertitta Gaming-backed bid as the only qualified one, according to court documents.
Zive's decision was made without any debate from creditors, most of whom have now agreed to Station Casinos' proposed two-part reorganization plan.
The first leg of the reorganization involved establishing a new holding company that would be owned by partner Colony Capital, secured lenders Deutsche Bank, JP Morgan and Fertitta Gaming, which was formed by Station Casinos founders Frank Fertitta III and his brother Lorenzo. The new company would take over casinos that provide more than half of Station Casinos' revenues: Red Rock Resort, Palace Station, Sunset Station, Boulder Station and the Wild Wild West and its adjoining 110 acres. The Fertittas will put up $85 million for their share of this company.
Friday's hearing was part of the second leg of the reorganization and gave the Fertitta Gaming group most of the rest of the company, including Texas Station, Santa Fe Station and the two Fiestas, certain land holdings and American Indian gaming contracts.
Unsecured creditors holding $2.8 billion in debt agreed to Station Casinos' reorganization plan last month after reaching an agreement to pay $100 million for as much as a 15 percent stake in the new company that will hold Red Rock Resort and the other four casinos.
Station Casinos attorney Paul Aronzon said Friday that Station Casinos has reached a tentative agreement with an independent group of unsecured lenders, too.
The sale and the other parts of the reorganization proposal still need to be approved by Zive at a hearing in Reno on Aug. 27.
Once the reorganization is confirmed, Nevada gaming regulators and the National Indian Gaming Commission then will have to confirm the new corporate ownership structure.
In addition to keeping the Fertittas involved in the company, Friday's sale means the Station Casinos name will remain in place on the local casinos because Fertitta Gaming will operate both sides of the reorganized company -- the casinos that were spun off into a new holding company and the casinos that were retained through the bankruptcy court auction process.
"Station Casinos has a lot of brand equity in the Las Vegas market," Nielson said. "We're going to keep it."
March Falcone, chief financial officer of Fertitta Gaming, said the company's focus will be on closing the two transactions.
"I wouldn't anticipate any changes in how the properties are managed," Falcone said. "There will be a new corporate structure."
Aliante Station and Green Valley Ranch Resort are not part of this bankruptcy case but will go through separate restructuring process, Nielsen said. The casinos are 50-50 joint ventures between Station Casinos and the Greenspun Corp., and were not including the bankruptcy filing.
Station Casinos did file Chapter 11 covering its subsidiary in Green Valley Ranch. The companies are still determining he best method to handle the financial restructuring of the two properties.
Station Casinos receives OK for sale - Business - ReviewJournal.com (http://www.lvrj.com/business/bankruptcy-judge-approves-sale-of-station-casinos-assets-100132089.html)
Xyience Inc., the energy drink company headquartered at 4572 Hacienda Ave., reported $42.3 million in liabilities and $5.3 million in assets. Xyience sells its energy drink through 230 convenience and grocery stores, mostly in the Southwest.
The voluntary bankruptcy petition, filed on Friday, follows an involuntary petition that was filed Jan. 3 by founder and former CEO Russell Pike and others. The involuntary petition remains pending.
The bankruptcy petitions for Xyience were filed under Chapter 11, which provides protection from creditors while the company reorganizes.
Despite the ominous circumstances, Xyience President Omer Sattar expressed optimism.
"We're excited about the opportunity (to reorganize the company), " he said. "Xyience has a great brand name and has a strong affiliation with the UFC."
The UFC holds mixed martial arts fights. According to bankruptcy papers, UFC is the largest mixed martial arts organization, and mixed martial arts are the second-most popular sporting event for men ages 18 to 34, following the NFL.
A representative for UFC President Dana White declined to make White available for comment and declined comment on behalf of the UFC.
Frank and Lorenzo Fertitta, members of the family that founded Station Casinos, own UFC. They also are creditors of Xyience with $12.5 million in unsecured claims and $5.3 million in secured claims, according to the bankruptcy filing. Attempts to reach the Fertittas on Monday were unsuccessful.
Sattar said the company would have filed for liquidation under Chapter 7 had not it not enjoyed the continued support of the Fertittas. Sattar said Xyience continues as a key UFC sponsor. Xyience signed a $15 million sponsorship agreement with the UFC for 2007.
Sattar said the bankruptcy became necessary when the company was unable to raise $7.5 million more from shareholders.
"Those negotiations, however, were derailed by a campaign of intimidations and threats led by company founder and former CEO Mr. Pike, Terry Cardenas, Ronald Solomon and Rick Klingenberg," he said.
"Associates of Mr. Pike and Mr. Klingenberg made threats of physical violence against Xyience management and board members and, on at least one occasion, showed up uninvited at the home of one member of management," Sattar said in bankruptcy court filings.
"Mr. Klingenberg and his brother David Bergstrom stormed into the Xyience office, cornering (Chief Financial Officer) Michael Levy in an office and refusing to allow Mr. Levy to depart until their demands were met," according to Sattar's filing.
If their mother wasn't paid, Klingenberg and Bergstrom said "somebody was going to ... get killed," Sattar said.
They demanded $20,000 "or else they would return the next day with guys who had a 100 percent collection rate," according to Sattar's filing.
Attempts to reach Pike, Bergstrom and Klingenberg for comment Monday failed.
Xyience was founded in 2004. Sales grew to $20.4 million in 2006, from $109,000 in its first year.
Sattar's filing says the company had difficulty raising money to pay for expansion.
When Pike resigned and tried to sell Xyience stock in California, the state's Department of Corporations issued a desist and refrain order against Xyience, according to court papers.
Sattar said the company has obtained postbankruptcy financing enabling it to pay for a backlog of drinks being kept by the drink maker, Cott Corp. The financing will enable Xyience to avoid losing shelf space to competitors, which would be difficult to regain, he said.
Sattar said Xyience encountered financial difficulties because it spent large sums of money on advertising and promotion but couldn't get the drink distributed in many stores. He hopes to revitalize the company by expanding its distribution to other convenience and grocery stores and by giving away samples at sporting events in hopes of developing new customers.
UFC sponsor files for bankruptcy - Business - ReviewJournal.com (http://www.lvrj.com/business/13967192.html)
Total Pro Sports - Station Casinos has proposed to file for pre-packaged bankruptcy. What does this have to do with MMA you ask? Station Casinos is owned by the Fertitta brothers, the owners of the UFC.
Station Casinos, owned by private equity firm Colony Capital along with Ultimate Fighting Championship (UFC) owners Frank and Lorenzo Fertitta, proposed filing for prepackaged bankruptcy in a deal with lenders as a failing economy and stingy credit market have stifled Las Vegas area gambling profits in a report by Bloomberg.com.
Founded by Fertitta’s father in 1976 as nothing more than a bingo hall, Station now operates 15 off-strip casinos designed for Las Vegas locals and employs roughly 14,000 people.
In addition to the decline in gambling revenue, Las Vegas home prices fell 41 percent through last November after peaking in August 2006. In addition, unemployment in Nevada, once far below the rest of the country, was a staggering 9.1 percent in December, compared with 7.2 percent for all of the U.S.
Hopefully this decision doesn't effect the UFC in anyway. The two companies are separately owned corporations, but a pinch in the casino market will most likely have an effect on the UFC. While the UFC is making strides to become a globalized product, the fact that Las Vegas is home to a large sum of their events can't be overlooked. A vote is due by March 2 on the proposed Station bankruptcy plan.
Total Pro Sports - Are The UFC And Dana White Going Bankrupt? (http://www.totalprosports.com/2009/02/17/are-the-ufc-and-dana-white-going-bankrupt/)
Station Casinos moved one step closer to emerging from bankruptcy intact Friday when a judge approved the sale of 11 casinos, land holdings and American Indian gaming contracts to a group backed by Fertitta Gaming for $772 million.
"Today's outcome means that Frank and Lorenzo Fertitta, the family that founded the company and grew Station Casinos into the most popular locals' casino company, will remain in control of all of our wholly-owned properties, our tribal gaming partnerships, and our land held for future development," Scott Nielson, executive vice president of Station Casinos, said in a statement.
"Everyone at Station Casinos is excited about this outcome and is ready to rededicate themselves to providing the friendly service, great value and overall entertainment experience that made Station Casinos the locals' favorite," Nielson said.
The transactions are expected to close early next year.
The locals gaming company filed for Chapter 11 bankruptcy protection a year ago with about $6 billion in debt.
Bankruptcy Judge Gregg Zive did not need to hold a planned auction Friday because the only other qualified bidder that submitted a letter of intent, Boyd Gaming Corp., dropped out of the auction last week, complaining that the auction process was tilted in favor of insiders. That left the Fertitta Gaming-backed bid as the only qualified one, according to court documents.
Zive's decision was made without any debate from creditors, most of whom have now agreed to Station Casinos' proposed two-part reorganization plan.
The first leg of the reorganization involved establishing a new holding company that would be owned by partner Colony Capital, secured lenders Deutsche Bank, JP Morgan and Fertitta Gaming, which was formed by Station Casinos founders Frank Fertitta III and his brother Lorenzo. The new company would take over casinos that provide more than half of Station Casinos' revenues: Red Rock Resort, Palace Station, Sunset Station, Boulder Station and the Wild Wild West and its adjoining 110 acres. The Fertittas will put up $85 million for their share of this company.
Friday's hearing was part of the second leg of the reorganization and gave the Fertitta Gaming group most of the rest of the company, including Texas Station, Santa Fe Station and the two Fiestas, certain land holdings and American Indian gaming contracts.
Unsecured creditors holding $2.8 billion in debt agreed to Station Casinos' reorganization plan last month after reaching an agreement to pay $100 million for as much as a 15 percent stake in the new company that will hold Red Rock Resort and the other four casinos.
Station Casinos attorney Paul Aronzon said Friday that Station Casinos has reached a tentative agreement with an independent group of unsecured lenders, too.
The sale and the other parts of the reorganization proposal still need to be approved by Zive at a hearing in Reno on Aug. 27.
Once the reorganization is confirmed, Nevada gaming regulators and the National Indian Gaming Commission then will have to confirm the new corporate ownership structure.
In addition to keeping the Fertittas involved in the company, Friday's sale means the Station Casinos name will remain in place on the local casinos because Fertitta Gaming will operate both sides of the reorganized company -- the casinos that were spun off into a new holding company and the casinos that were retained through the bankruptcy court auction process.
"Station Casinos has a lot of brand equity in the Las Vegas market," Nielson said. "We're going to keep it."
March Falcone, chief financial officer of Fertitta Gaming, said the company's focus will be on closing the two transactions.
"I wouldn't anticipate any changes in how the properties are managed," Falcone said. "There will be a new corporate structure."
Aliante Station and Green Valley Ranch Resort are not part of this bankruptcy case but will go through separate restructuring process, Nielsen said. The casinos are 50-50 joint ventures between Station Casinos and the Greenspun Corp., and were not including the bankruptcy filing.
Station Casinos did file Chapter 11 covering its subsidiary in Green Valley Ranch. The companies are still determining he best method to handle the financial restructuring of the two properties.
Station Casinos receives OK for sale - Business - ReviewJournal.com (http://www.lvrj.com/business/bankruptcy-judge-approves-sale-of-station-casinos-assets-100132089.html)