Natura World, a producer of organic and natural sleep products, has filed a notice of intent to restructure its business under the Canadian Bankruptcy and Insolvency Act. The notice was filed Dec. 27 at the Office of the Superintendent of Bankruptcy in Canada.
Earlier that month, the Cambridge, Ontario-based company reached an agreement with its lender, Callidus Capital of Toronto, to provide $7.8 million Canadian ($7.6 million U.S.) in new financing. Natura World said that during the restructuring, it expects no disruption of service to its customers and that its improved cash position will enable it to improve relationships with company stakeholders.
Natura World USA and its NexGel product group, headquartered in Wichita Falls, Texas, are not included in the filing. In October, the company cut its Texas work force by 26 people and reduced production to a single shift.
Ralph Rossdeutscher, Natura president, said the bankruptcy filing and restructuring were necessary to enable the company to shed debt it amassed when it made significant investments in new products, equipment and technologies just prior to the start of the recession.
Under the plan filed with the bankruptcy office, Rossdeutscher would maintain a majority ownership stake in the company.
“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 said.