NexCen Restructures Debt, CEO Leaves

NEW YORK (Blue MauMau) - NexCen Brands, franchisor to such diverse concepts as The Great American Cookie, The Athlete's Foot, Maggie Moo's Ice Cream and other retail chains, has come to an arrangement with its lender, BTMU Capital Corp, on what many had expected to result in a possible filing of bankruptcy next week. 

Effective Friday, Robert D'Loren has stepped down as Chief Executive Officer and a member of the board of directors. The current Chief Financial Officer, Ken Hall, is the new CEO.

David S. Oros, Chairman of NexCen Brands, states, “Ken has been instrumental in completing the restructuring of the Company’s financing arrangements and we are confident in his ability to lead NexCen as the Company continues to execute the business restructuring plan initiated in May, which focuses on the franchising business.”

Troubled NexCen spent some $100 million to acquire the Great American Cookie during the end of last year and the beginning of this year, only to have D'Loren state after his CFO left the company that he didn't realize that the upcoming interest payment for the acquisition would be so high. The firm discovered, during a review of its books, reporting errors and its obligation to pay off $21 million in debt by October.

D'Loren had warned that he had "substantial doubt" that the firm would remain in business.

The firm has re-negotiated credit agreements significantly revise the terms of the outstanding borrowings, which total $175.7 million.

“We are very pleased to have completed the restructuring of this bank credit facility with BTMUCC and are gratified by the ongoing support of our lender,” stated Kenneth J. Hall, the firm's new Chief Executive Officer.

On Tuesday, NexCen received notification from The Nasdaq Stock Market that it was not in compliance with its standards due to its failure to file a Quarterly Report and its stock will be delisted.

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Related readings:

• NexCen Doubtful of Surviving
• NexCen President Calms Franchisees' Fears
• NexCen Accesses Short-Term Cash, Exploring Sale of Brands
• NexCen Statement from Legal Department