$15 million offer made for Xyience
Xyience Inc., the Las Vegas-based maker of energy drink Xenergy, has found a potential buyer for the bankrupt company and other bidders are expected to emerge.
Manchester Consolidated Corp. is offering $15 million for Xyience as a "stalking horse" bidder for the drink maker, according to papers filed Friday by Xyience attorneys. The payment would include $200,000 in cash plus assumption of $14.8 million in secured debt held by Zyen LLC.
A footnote in a bankruptcy case filing said information regarding Manchester Consolidated can be found at the Web site of Toronto-based Manchester Capital, which has Anthony Pallante as its chairman and CEO. Manchester Capital describes itself as a boutique merchant banker and investor in small companies with prospects for rapid growth.
Omer Sattar, president and chief operating officer of Xyience, said he couldn't discuss the bidder. But he said he expects other companies to make competing bids, which could result in a higher price.
The proceeds would go to creditors of Xyience, which include companies controlled by Lorenzo and Frank Fertitta, owners of the Ultimate Fighting Championship. Xenergy, the debtor's drink, is a nonexclusive sponsor of the UFC, a televised mixed-martial arts fight program.
Competing bids will be accepted until March 28 at Fennemore Craig, the debtor's law firm. If the firm receives qualified competing bids, the bankruptcy court will hold an auction on April 1.
Xyience filed for Chapter 11 bankruptcy in January, listing $42.3 million in liabilities and $5.3 million in assets. It distributes its product in 24,000 grocery stores.
Contact reporter John G. Edwards at jedwards@reviewjournal.com or (702) 383-0420.
