Bang Energy, the energy drink maker beset by lawsuits, filed for chapter 11 protection in Florida on Monday with plans to revamp its distribution model, Bloomberg News reported. Vital Pharmaceuticals Inc., Bang’s parent company, listed assets and liabilities of as much as $1 billion each in its bankruptcy petition. Bang intends to continue operating and has $100 million of new financing lined up from lenders, according to a statement. Bang plans to use court protection to implement a new, improved distribution network, according to the statement. The company says it lost a significant share of the energy drink market in recent years, when it was partnered with Pepsi. The filing will also help Bang recover from multiple lawsuits, according to the statement. Competitor Monster Energy Co. won $293 million this year in a false advertising and trade secrets case against Bang. Monster is identified in bankruptcy court papers as Bang’s largest unsecured creditor. Bang also owes PepsiCo Inc. $115 million under a settlement, court papers show. The company’s partnership with Pepsi, which began in 2020, came undone amid disputes and lawsuits.
