Spa Chakra Receives Court Approval to Honor and Fulfill Gift Card and Customer Loyalty Programs, and Pay Its Employees

Also receives court approval to proceed under Debtor-in-Possession "DIP" financing support from Hercules Technology Growth Capital, Inc.

Dec 15, 2009, 15:57 ET from Spa Chakra, Inc.

NEW YORK, Dec. 15 /PRNewswire/ -- At hearings held Friday, December 11th and Monday, December 14th in the United States bankruptcy court, Spa Chakra, Inc., a global luxury spa network, successfully achieved the following three critical goals. The Company has received court approval to:

  • Honor and fulfill all gift card and other customer loyalty programs;
  • Continue to pay its employees; and
  • Be provided capital under a Debtor-in-Possession or "DIP" financing from Hercules Technology Growth Capital, Inc.

Under the court approved DIP financing, Spa Chakra will continue to receive financial support from its lender to ensure that existing operations will continue with little to no disruptions or impact on its business operations, enabling the Company to continue to provide the sophisticated and high-level services its loyal customer base expects.

Mike Canizales, CEO and Founder of Spa Chakra added, "Gift cards are an integral part of our business and extremely important to our clients during the holiday season. We are thankful to be able to act quickly to resolve any concerns in advance."

About Spa Chakra, Inc.:

Initially founded in 1998 in Australia, Spa Chakra has continued to expand both domestically and overseas. Uniquely positioned in the marketplace, Spa Chakra has developed an award winning network of 16 luxury spas worldwide. Spa Chakra represents leading high-end luxury cosmetic and spa brands and is recognized as one of the top spa operators in the world. Visit the company's website at www.spachakra.com.

SOURCE Spa Chakra, Inc.



RELATED LINKS

http://www.spachakra.com