Neways kept itself out of bankruptcy, but at what expense?
This will be an interesting one to watch. You can be sure that these private equity firms will be looking to get their money back and sometimes that can happen at the expense of the distributors associated with the company.
Let’s hope this is a step in the right direction for the company and it’s distributors.
SPRINGVILLE, Utah, Jan. 19, 2012 /PRNewswire via COMTEX/ — Neways Enterprises, a worldwide leader in dietary supplements and personal care products, announced today that it has completed a comprehensive out-of-court restructuring, allowing the company to significantly reduce its debt. As a result of the transaction, private equity firm Z Capital Partners, L.L.C. and funds affiliated with S.A.C. Capital Advisors, L.P. will in the aggregate own a majority of Neways. Golden Gate Capital will maintain an equity stake in the Company.