CirTran Relieved of $1.4 Million in Royalties and Debt Obligations Involving Playboy Energy Drink in Settlement
SALT LAKE CITY--(BUSINESS WIRE)-- CirTran Corporation (OTCBB: CIRC), an international contract manufacturer of energy beverages and consumer products, said today that it has been relieved of approximately $1.4 million in accrued royalties and other debt obligations claimed by former Play Beverages' partners involving Playboy Energy Drink line after a settlement. This settlement will improve CirTran's bottom line by that amount.
CirTran President Iehab J. Hawatmeh said "the Play Beverages Parties," including Bev Group, LLC, CirTran Beverage Corporation, CirTran Corporation, Fadi Nora and himself, settled with "the LIB-MP parties," including LIB-MP Beverage, LLC, American Sales and Merchandising, LLC, and individuals Warner K. Depuy, Michael Liberty and Jeffrey Pollack.
Under the agreement, the parties exchanged mutual general releases without payment by any party of any amounts to any other. Accordingly, Play Beverages Parties was relieved of the $1,375,618 payment obligation to the LIB-MP parties. .
Mr. Hawatmeh said that "the LIB-MP parties" had filed the petition that forced PlayBev into involuntary bankruptcy, but in December, 2012, the U.S. Bankruptcy Court (District of Utah) vacated the bankruptcy, freeing PlayBev to take legal actions to protect the product license granted for its Playboy Energy Drink.
That was the first "three consecutive major legal victories for 'the Play Beverages Parties'," he said, setting the stage for this settlement. "Now we can go back to work to regain the momentum we had in establishing Playboy Energy Drink a 'player' in the international marketplace."
Introduced in 2008, Playboy Energy Drink is manufactured and distributed exclusively by CirTran Beverage Corporation, a wholly owned subsidiary of CirTran Corporation under a product license from Playboy Enterprises to Play Beverages. It is currently available in more than 20 countries.
About CirTran Corporation
Marking its 20th year in business, CirTran Corporation (www.cirtran.com) has evolved from its roots as an international, full-service contract manufacturer. From its headquarters in Salt Lake City, 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. 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.
This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement.CirTran disclaims any obligation or intention to update any forward-looking statement.
Iehab J. Hawatmeh, +(801) 963-5112
KEYWORDS: United States North America Utah
The article CirTran Relieved of $1.4 Million in Royalties and Debt Obligations Involving Playboy Energy Drink in Settlement originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.