Leiner Health Products, the US dietary supplement producer, has filed a Chapter 11 petition in the US Bankruptcy Court. The company said it hoped to emerge from the Chapter 11 status within 45 to 60 days.
The move is in line with Leiner's restructuring which began in November 2001 and which was prompted by a string of losses. The restructuring decision came too late to improve the situation in the third quarter, however, and earlier last month Leiner reported losses of $11.1 million (€12.8m) for that three month period.
Leiner said that it had arranged a recovery plan with its bank lenders prior to filing for Chapter 11 bankruptcy. "Thanks to the continuing support from our bondholders and bank lenders, Leiner is able to implement one of the final pieces of its restructuring plan," stated Robert Kaminski, chief executive officer.
"We expect to emerge from this process strengthened with a more appropriate capital structure and re-engineered business well-positioned to build on our industry leading track record of quality and service."
Leiner said that it would continue with business as usual during the Chapter 11 period. The company's Canadian business, Vita Health, is not filing for bankruptcy and will continue business as usual.