Frozen dessert maker CoolBrands International said yesterday (11 October) that lenders to its joint venture facility in Texas are no longer willing to loan money to the company, requesting that existing debt be repaid immediately due to existing defaults under its credit facilities.
Coolbrands has authorised its subsidiaries to file an involuntary petition under the Bankruptcy Code against Americana Foods, the joint venture in which it holds a 51% stake.
The company said that the filing does not relate to CoolBrands or any of its subsidiaries. “CoolBrands continues to work with its lenders to address matters with respect to its credit facilities,” the company added.
In what Coolbrands said was an “unrelated matter”, Frank Orfanello has resigned as the company’s executive vice president. Ordanello has agreed to continue working with the company for several months in a consulting capacity.