New York, Sept 14 - Merisant Worldwide Inc, maker of the Equal low-calorie sweetener, said on Monday it filed a bankruptcy reorganization plan with the court and could exit court protection as early as January.
The company, which also makes the PureVia sweetener, said its reorganization plan is supported by Wayzata Investment Partners, which controls about two-thirds of its loans under a credit facility.
"Merisant anticipates that it will be able to obtain confirmation of the Plan and emerge from bankruptcy as early as January 1, 2010," the company said in a statement.
Under the proposed plan, Wayzata will exchange a $45 million debt claim for new convertible preferred stock equal to 75 percent of the reorganized company's common stock. The company will also initiate a $5 million rights offering, according to court papers.
Merisant filed for bankruptcy protection in January, weighed down by increased competition and too much debt.
The proposed reorganization plan removes about $400 million of debt from the company's balance sheet. It is subject to a creditor vote and court approval.
A court hearing to consider the company's reorganization plan is scheduled for Oct. 19, according to court papers.
The case is In re Merisant Worldwide Inc, U.S. Bankruptcy Court for the District of Delaware, No.09-10059.