Merisant noteholders object to company's third exclusivity extension

By Alice Popovici

New York, Nov. 10 - Merisant Worldwide, Inc. noteholders Nomura Corporate Research & Asset Management, Inc. objected to the company's third exclusivity extension, in order "to permit Nomura to propose its own plan for creditors to consider," according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company requested a 60-day extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, which would extend its exclusive plan-filing period to Dec. 19 from Oct. 20 and the solicitation period to Feb. 17 from Dec. 19.

Merisant's request for an exclusivity extension should be denied because its second amended plan "is grossly unfair and unconfirmable," does not satisfy the confirmation standards of the bankruptcy code and "does not treat similarly situated creditors in like fashion," Nomura said in the motion.

"Nomura and certain similarly situated parties are in the process of formulating an alternative restructuring transaction that, if successful, will provide higher and better value for the entire estate, treatment for good faith creditors that is equal or better than that provided under the [company's] second amended plan, and will rid the estates from the burden of the grossly excessive treatment Wayzata has managed to extract from the company."

As previously reported, Wayzata Investment Partners controls two-thirds of the total principal amount of loans outstanding under Merisant Co.'s credit facility, as well as a majority of its 9½% senior subordinated notes due 2013.

Merisant, a Chicago-based marketer of low-calorie tabletop sweeteners, filed for bankruptcy on Jan. 9, 2009. Its Chapter 11 case number is 09-10059.

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