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Jolt Co files for bankruptcy protection

Published on 1 Oct 2009 under category: legal

The makers of a drink available throughout Europe, the US and Canada has filed for bankruptcy protection.

Jolt Co, which produces the Jolt Cola energy beverages, took the action in a US court earlier this week, bankruptcy solicitors may be interested to hear.

A contract with can maker Rexam is reported to be one reason for the firm having to enter Chapter 11 bankruptcy protection.

This deal states that the company must purchase 90 million cans with resealable lids from Rexam, however, due to financial concerns, it has as yet only been able to buy 27 million.

Jolt, which has until December of this year to purchase the remaining items, has also cited competition in the market as a reason for the action.

Earlier this week, it was revealed that Jessops has been saved from insolvency by a restructuring plan that will see HSBC acquire a 47 per cent stake in the company.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.