The MonaVie foreclosure
This article has been updated 6/16/2015
MonaVie was once the darling of the network marketing world. They were founded in 2005. Their best year in business had estimates of their annual revenue to be in the neighborhood of $825,000,000. That’s a really nice neighborhood! Those types of earnings would have put MonaVie in the top 25 revenue generators of all network marketing companies.
Oh, how the mighty have fallen! I was unable to find MonaVie in the top 100 MLM companies in terms of annual revenues generated, for 2014. You can see the list of the top 100 here.
As the story goes …
MonaVie had taken a loan of $182,000,000, at 12%, from the TSG-MV Financing, in 2010. The note was secured by the assets of MonaVie. Earlier this year Jeunesse Global purchased that note. MonaVie was unable to continue to make payments on the note to Jeunesse.
MonaVie Foreclosure UPDATE: 5/15/15
It is being reported that MonaVie actually defaulted on the original loan. The note was then purchased from TSG-MV Financing, in March 2015, by the parent company of Jeunesse Global, Legacy Alliance Partners.
To me, there is only one reason why you buy a note that is in default. You buy it because you know the company will probably default on the new loan. My guess is that MonaVie renegotiated the loan with Legacy Alliance Partners and tried to continue doing business.
The whole deal looks like suspicious. It appears that Legacy Alliance wanted to acquire MonaVie and this was the cheapest and quickest way to do that.
What does the MonaVie foreclosure mean?
MonaVie is in default. Jeunesse is foreclosing on MonaVie. In essence, Jeunesse will acquire the entire MonaVie company. All of MonaVie’s assets, down to the staplers.
The number of distributors, in MonaVie, was last reported to be nearly 80,000. What will become of them? Will they be Jeunesse distributors or will they be looking to go elsewhere? Only time will time.
It will be interesting to see if Jeunesse incorporates the MonaVie product line into their own and whether or not all of the distributors join Jeunesse. Jeunesse Global is in a similar niche as MonaVie and the product lines seem to go together fairly well.
Jeunesse Global is in the top 100 revenue generating MLM companies. In 2014, they generated a reported $419,000,000.
The MonaVie foreclosure and their employees
Currently, the bank that represents the employee stock ownership program was granted a TRO (temporary restraining order). The TRO, will stop the transfer of the assets of MonaVie to Jeunesse Global. This comes as no surprise, because a MonaVie foreclosure could make the employee’s holdings worthless. The TRO will give the bank time to go over the details of the MonaVie foreclosure.
MonaVie Foreclosure UPDATE: 5/16/15
U.S. District Judge Bruce Jenkins is presiding over this case. He did grant the TRO to Bankers Trust Co. of South Dakota. Bankers Trust is the administrator of the employee’s stock ownership program.
The judge was quoted as saying “There’s a lack of clarifying information of MonaVie and this series of transactions, and I personally prefer we deal with matters on as good of an evidentiary basis we possibly can.”
The judge wants to hear all of the evidence about the loans that MonaVie has, in order to make a decision. It must seem a bit suspicious to the judge, too!
There is another hearing set for May 29, 2015.
MonaVie Foreclosure UPDATE: 5/28/15
The hearing that was requested by Bankers Trust Co. of South Dakota, will begin tomorrow, 5/29/2015. It is unlikely that a decision will be reached, tomorrow. As news becomes available, I will update this article.
The MonaVie foreclosure shows all network marketers that even a 10 year old company can go out of business. It would behoove you to keep up with the company news of whatever MLM company you are working with!
MonaVie Foreclosure UPDATE: 5/30/15
The details are a bit sketchy at this point point, but it is being reported by the Salt Lake Tribune that U.S. District Judge Bruce Jenkins issued a ruling on the MonaVie foreclosure, yesterday.
Judge Bruce Jenkins will allow Legacy Alliance Partners, the parent company of Jeunesse Global, to complete the foreclosure of MonaVie.
The Salt Lake Tribune is also reporting that it cost Legacy Alliance Partners a mere $15,000,000 to acquire MonaVie. I take this to mean that they were able to buy the loan, that MonaVie had defaulted on for this amount.
It will be interesting to see if there are any appeals of this ruling!
If you would like to read the Salt Lake Tribune article, you can find it here.
There is not much to report on this story. I did read an article that said that both MonAvie and Jeunesse Global have been operating as separate entities while all of the legal issues are worked out. It will be interesting to see if the two companies continue to be separate or if they will be integrated over time.
It seems as though the MonaVie foreclosure is complete.
I’ll expand this article as new information become available.
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