SALT LAKE CITY–(BUSINESS WIRE)–Play Beverages, LLC announced today that the U.S. Bankruptcy Court for the District of Utah has ruled in its favor and vacated its bankruptcy, freeing it to take legal actions to protect the product license granted for its Playboy Energy Drink.
Judge Joel T. Marker rejected a motion by petitioning creditors, led by the same three creditors who first put Play Beverages into involuntary Chapter 7 bankruptcy in April 2011. The judge’s ruling takes Play Beverages out of bankruptcy, enabling it to continue its action in state courts against Playboy Enterprises and others to protect its license to produce and sell Playboy Energy Drink.
The Bankruptcy Court’s ruling also reject the motion of the U.S. Trustee overseeing the bankruptcy case to convert the case to Chapter 7 or to have it dismissed. If converted, a trustee would have been appointed to liquidate Play Beverage’s business to repay creditors.
The dismissal followed a two-day evidentiary hearing, with Play Beverages stipulating to an order of dismissal, saying it did not need bankruptcy protection.
“The ruling by Judge Marker to take Play Beverages out of bankruptcy, allowing the resumption of normal business activities, is the end of a nightmare,” said Iehab J. Hawatmeh, CirTran’s president. “Now, after 18 months of seeing every aspect of our business impacted negatively, we can move forward to hopefully regain our momentum and resume growing our beverage business.”
Introduced in 2008, Playboy Energy Drink is manufactured and distributed exclusively by CirTran Beverage Corporation, a wholly owned subsidiary of CirTran Corporation (OTCBB: CIRC) under a product license from Playboy Enterprises to Play Beverages, and is currently available in more than 20 countries around the world.
About CirTran Corporation
Set to mark its 20th year in business in 2013, CirTran Corporation (www.cirtran.com) has evolved from its roots as an international, full-service contract manufacturer. From its headquarters in Salt Lake City, Utah, where it operates, along with its Racore Technology (www.racore.com) electronics manufacturing subsidiary, from an ISO 9001:2000-certified facility, CirTran has grown in scope and geography. Today, CirTran’s operations include: CirTran-Asia, a subsidiary with principal offices in ShenZhen, China, which manufactures high-volume electronics, fitness equipment, and household products for the multi-billion-dollar direct response industry; CirTran Online, which offers products directly to consumers through major retail web sites; and CirTran Beverage, which has partnered with Play Beverages, LLC, to introduce and distribute the Playboy Energy Drink.
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