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Skinny Nutritional Sale Approved

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The U.S. Bankruptcy Court entered an order (i) authorizing the sale of substantially all of the assets of Skinny Nutritional Corp. (the seller) to Skinny Nutritional LLC (the purchaser), free and clear of liens, claims, encumbrances and interests, pursuant to an asset purchase agreement dated November 15, 2013; (ii) approved the terms of the asset purchase agreement; (iii) authorized the assumption by Skinny Nutritional Corp. and the assignment to the purchaser of certain contracts of Skinny Nutritional Corp. and (iv) granted certain related relief. The purchase agreement provides that the assets will be sold to the purchaser on an “as is” “where is” basis, without express or implied warranties, for a purchase price of $1,500,000, less the outstanding amount of debtor-in-possession financing provided to Skinny Nutritional Corp. by the purchaser, subject to adjustment. As of January 15, 2014, Skinny Nutritional Corp. owes the purchaser approximately $131,000 for debtor-in-possession financing. In its order, the Court made findings of fact that (i) the Company had adequately marketed the Company’s assets; (ii) the purchase price of the assets constituted the highest and otherwise best offer and provided fair and reasonable consideration therefor; (iii) the sale will provide a greater recovery for the Company’s creditors than would be provided by any other practical available alternative; (iv) no other party had offered to purchase the acquired assets for greater economic value to the Company and (v) the consideration to be paid by the purchaser constituted reasonably equivalent value and fair consideration.

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