CoVenture Says It Wasn’t Warned of Amazon Brand-Buyer Bankruptcy
- Investment firm says Benitago’s Chapter 11 came without notice
- CoVenture backed Benitago and says it’s owed about $85 million
Benitago develops and acquires a vast array of products, using marketing strategies to increase their prominence on Amazon.
Photographer: Christopher Lee/BloombergThis article is for subscribers only.
Investment management firm CoVenture said it was preparing to discuss restructuring options for Benitago, a struggling e-commerce startup it funded, when it was surprised to learn the business which rolls up popular brands sold on Amazon.com Inc. instead filed bankruptcy.
CoVenture lawyer Oscar Pinkas said Friday during a bankruptcy hearing in New York the firm consented to waivers and forbearances on a loan it provided Benitago to aid the startup’s turnaround efforts. CoVenture invested in Benitago and is owed roughly $85 million in principal and deferred interest payments on its loan, according to court documents.