Business
Wholefood Farmacy submits Amended Plan of Reoganization to Reflect Agreement with Major Creditor
Wholefood Farmacy submits Amended Plan of Reoganization to Reflect Agreement with Major Creditor.
About this update from Syntrol Corporation
[{"type":"text","content":"The Wholefood Farmacy (WFMC - news) announced today that an agreement has been signed between the company, its wholly-owned subsidiary currently in Chapter 11 reorganization, Think Again, Inc., (TAI) and Whole Living, Inc., (WHLV) the largest creditor of TAI, and various other interested parties. This allows TAI to settle and satisfy all of the claims of WHLV pending in bankruptcy court against TAI, provides for settlement of all lawsuits pending between TAI and WHLV, provides for a capital infusion to pay the claims of WHLV, and provides for the redemption of approximately 34% of the outstanding common stock of The Wholefood Farmacy. The agreement has been approved by of the bankruptcy court in TAI's bankruptcy case, but its terms remain subject to implementation in TAI's plan of reorganization.\r\n\r\nTAI has submitted the signed agreement to the bankruptcy court as part of its plan of reorganization and, if necessary, to a vote of its creditors to approve the settlement as a modification of its plan of reorganization. Upon approval of the plan, as amended, and the consummation of the agreement, the net outstanding common shares will be affected as follows: 11,450,000 shares of restricted common stock currently held for the benefit of WHLV will be redeemed and approximately 6,000,000 shares will be reissued to individual equity investors.\r\n\r\nCEO Steven L. Tilton commented, \"This marks the beginning of a new era at The Wholefood Farmacy. For the past 3 years a considerable amount of our time and resources have been devoted to resolving these longstanding legal issues. Now that the issues have been resolved, we are looking forward to 2007 with great expectations and all of our time and resources will be brought to bear on new product development and marketing strategies.\" \r\n\r\n\r\nForward-Looking Statement \r\n\r\nThis Press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on the Company's current expectations as to future events. However, the forward-looking events and circumstances discussed in this press release might not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements. \r\n\r\nCONTACT: Wholefood Farmacy C...