VPX Sports receives confirmation of Chapter 11 plan of liquidation

By Sarah Lizee

Olympia, Wash., Nov. 8 – Vital Pharmaceuticals, Inc., which does business as VPX Sports, received confirmation of its second amended Chapter 11 plan of liquidation, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Florida.

As previously reported, the company sold its assets to Blast Asset Acquisition LLC, a subsidiary of Monster Beverage Corp., for a purchase price of $362 million.

VPX also inked a settlement agreement with Monster, which is the company’s largest unsecured creditor, the official committee of unsecured creditors, debtor-in-possession lenders, prepetition lenders and other parties which aimed to resolve the various litigations between the parties.

Under the plan, holders of other secured claims and other priority claims are unimpaired.

General unsecured claims are impaired. Holders will receive liquidating trust interests entitling them to their pro rata share of the residual cash. However, no distributions of residual cash or otherwise shall be made to holders of settlement parties’ allowed general unsecured claims unless and until:

• In the case of the allowed DIP deficiency claim, holders of allowed general unsecured claims not constituting settlement parties’ allowed general unsecured claims have received distributions totaling, in the aggregate, at least (a) $5 million less the positive difference, if any, between the debtors’ good faith estimate of residual cash held by the debtors as of the effective date and (b) $15.5 million minus the total amount of fee claims for professional services rendered or costs incurred on or after the closing date through the effective date;

• In the case of all other allowed settlement parties’ allowed general unsecured claims, holders of allowed general unsecured claims have received distributions totaling, in total, at least $5 million.

Distributions to holders of allowed general unsecured claims will be made at such times and in intervals as determined by the liquidating trustee.

Intercompany claims and other subordinated claims are impaired, with no distribution to these classes.

Existing equity interests are impaired. If all higher priority classes have been paid in full, holders may receive their amount of proceeds realized from the liquidating trust assets consistent with their rights of payment existing immediately prior to the petition date.

The Pembroke Pines, Fla.-based maker of Bang energy drinks and other products filed Chapter 11 bankruptcy on Oct. 10, 2022 under case number 22-17842.

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