Problems continue for Canadian-based ice cream maker CoolBrands International with the latest blow being the resignation of Board member Romeo DeGasperis. The company said last month that DeGasperis resigned for health reasons.
CoolBrands also received a credit warning last month from JP Morgan Chase & Co, the administrative agent of two separate credit agreements, cautioning that it reserves the right to terminate credit agreements due to continued failure to meet earnings targets.
"JP Morgan indicated that, while it is not terminating its commitment to lend at this time, it retains the right to do so for any reason as a result of defaults that continue to exist under the Credit Agreements," CoolBrands said.
CoolBrands said that it remained committed to working with JPMorgan to resolve the situation, adding that it is examining various options, including the disposal of non-core assets. CoolBrands' product portfolio includes Eskimo Pie, Godiva ice cream, Whole Fruit sorbet and Tropicana fruit bars.