Juul Moves to Enter Financing Talks for Potential Bankruptcy




  • In Business
  • 2022-10-04 22:48:36Z
  • By Bloomberg
 

(Bloomberg) -- Juul Labs Inc. is beginning talks regarding funding for a potential Chapter 11 bankruptcy, according to people with knowledge of the preparations.

Most Read from Bloomberg

  • Musk Revives $44 Billion Twitter Bid, Aiming to Avoid Trial

  • Loretta Lynn, Coal Miner's Daughter And Country Queen, Dies

  • Elon Musk Sets Off Uproar in Ukraine by Tweeting His 'Peace' Plan

  • Biden, Kishida Condemn North Korean Missile Launch Over Japan

  • Stock Shorts Fold in Best Two-Day Rally Since 2020: Markets Wrap

The e-cigarette manufacturer has engaged in informal talks regarding so-called debtor-in-possession financing, said the people, asking not to be named discussing private information. Formal discussions with potential lenders are expected to progress in the coming days, one of them said.

The preparations aren't final, and plans could change. A spokesman for Juul said the company is still considering other avenues.

"We will continue the preparation process for both a restructuring and other strategic options as we determine what path is best for our company," the spokesman said.

Juul hired bankruptcy advisers Kirkland & Ellis and Alvarez & Marsal in June after the FDA banned Juul products on US shelves, citing a lack of evidence demonstrating their overall safety. The company has been mulling a possible bankruptcy filing since then, along with pursuing various financing options, as previously reported by Bloomberg.

Reorg reported earlier that Juul was preparing for a filing.

The company won a court order temporarily blocking the FDA decision, and the agency separately stayed its ban, allowing the company to continue selling products.

Juul has also faced hundreds of millions of dollars in damages from a barrage of lawsuits alleging it targeted minors.

It has agreed to settle certain of those claims for more than $500 million, including through an agreement in principle with 33 states to resolve a two-year bipartisan probe into its marketing and sales practices.

(Updates to add earlier report in sixth paragraph.)

Most Read from Bloomberg Businessweek

  • Millions in Cryptocurrency Vanished as Agents Watched Helplessly

  • Pfizer Needs to Prove It's Ready to Move On From Covid-19

  • Maine Lobster Union Points the Way for Organizing Gig Economy Workers

  • Big Pharma Is Chasing a $55 Billion Prize of Safer Blood Thinners

  • The Unstoppable Dollar Is Wreaking Havoc Everywhere But America

©2022 Bloomberg L.P.

COMMENTS

More Related News

Japan
Japan's Households Spend More Despite Accelerating Inflation

(Bloomberg) -- Japan's households boosted spending in October for a second straight month despite accelerating inflation and falling real wages, marking a...

Oil Snaps Two-Day Drop With China Demand and Russia Cap in Focus
Oil Snaps Two-Day Drop With China Demand and Russia Cap in Focus

(Bloomberg) -- Oil rose for the first time in three days on optimism China's reopening will buoy demand, and as investors assessed the implications of the...

Apple
Apple's Anti-Union Tactics in Atlanta Were Illegal, US Officials Say

(Bloomberg) -- US labor board prosecutors have determined that Apple Inc. violated federal law by interrogating and coercing employees in Atlanta, the latest...

Apple Store Employees Chide Union in Rare Display of Pushback
Apple Store Employees Chide Union in Rare Display of Pushback

(Bloomberg) -- Apple Inc. retail employees pushed back on unionization efforts at a location in St. Louis, with staffers saying they don't want to be...

Vans, Supreme Owner Cuts Forecast on Lower Demand; CEO Departs
Vans, Supreme Owner Cuts Forecast on Lower Demand; CEO Departs

(Bloomberg) -- VF Corp., the owner of Vans sneakers and the Supreme streetwear brand, fell the most in more than two years after cutting its forecast and...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business