Judge Values Nellson Nutraceutical At $320M

Law360, New York (January 19, 2007, 12:00 AM EST) -- Bankrupt diet food maker Nellson Nutraceutical is worth much less than originally estimated, which may jeopardize the ability of its main equity holder to retain its stake in the company.

Judge Christopher S. Sontichi of the U.S. Bankruptcy Court for the District of Delaware has put the company’s value at about $320 million, despite the company’s earlier estimate that the business is worth $400 million.

Nellson filed for Chapter 11 bankruptcy protection last spring, listing assets of $100 million and debts of $365 million. The company,...
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