US weight management products maker Health & Nutrition Systems International (HNS) has announced that the company has filed for protection under Chapter 11 of the US Bankruptcy Code.
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The company said it is currently developing a plan of reorganisation that will be submitted to the court for approval. HNS also announced it had entered into an asset purchase agreement with Florida-based TeeZee under which TeeZee has offered to acquire substantially all of the assets of HNS, in exchange for total consideration of US$2.29m.
If the plan is confirmed, and the sale takes place, Health & Nutrition Systems said the proceeds will be used by the company to identify and facilitate its entry into a more profitable line of business, either through a merger or otherwise.
