Tag Archives: chapter 11 bankruptcy

Arbonne Completes Financial Restructuring through Chapter 11 Bankruptcy

Today, Monday, March 8, 2010 Arbonne announced that they have completed the Prepackaged Financial Restructuring through Chapter 11 Bankruptcy.

The Pre-packaged Plan of Reorganization was confirmed by the U.S. Bankruptcy Court in Wilmington, Delaware, on February 22, 2010, and became effective on March 5, 2010.

What this means is Arbonne has officially emerged from the Financial Restructuring through Chapter 11 Bankruptcy.

Congratulations to Arbonne and all those Consultants who believed and stayed the course.

Now on to a great NTC and the largest product launch in Arbonne history.

A great way to celebrate 30 years!

Click here for more information and the official press release.

© 2010, VoiceWind. . .Greg Loveless. All rights reserved.

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Trump Network MAB Authorizes Unethical Proselyting of Arbonne Consultants

Emails from the Trump Network's Marketer's Advisory Board (MAB) & The Executive Diamond Group (EDG):

We recently received correspondence from those within and working on behalf of the Trump Network attempting to take advantage of those in Arbonne as the Arbonne Restructuring through Chapter 11 Bankruptcy continues.

As is our policy at VoiceWind.net, we believe the best remedy for inappropriate policies is to expose them to public scrutiny. So here are the facts.

The following are the most important portions of the correspondence.

"I know you have had much success with Arbonne, and to be frank with you, the company (meaning the owners and Mr. Trump himself) are looking for people just like yourself…
 
To put it plainly, we are looking for entrepeneurs with previous MLM experience that have significant downlines."

This person then attaches correspondence from his upline training team in Trump Network and the Tump Network Advisory Group.

"> Who do you know? Who could make a major impact on this company? Who has a huge organization in another company? Who is a person of significant influence?

> Your MAB and the EDG"

DSA (Direct Selling Association) Ethical Guidelines on Proselyting:
For the full information go to: www.dsa.org/ethics/proselyting/

"It is considered to be an improper practice when Company A, or its representatives, specifically and consciously targets the sales force of Company B with the intent of persuading Company B’s salespersons or employees not only to sell or work for Company A, but also to cease selling or working for Company B, thereby interfering with Company B’s business or contractual relations…it does apply to situations involving more than several persons, where the pattern, approach and timing of Company A would clearly indicate an intention to adversely impact on Company B. If Company B sends correspondence to Company A regarding alleged proselyting activity, Company A is expected to appropriately respond within 30 days after receipt of the correspondence."

How the Trump Network Violates DSA Proselyting Guidelines:

  1. They are contacting someone with success in Arbonne
  2. Those in other companies with significant downlines or huge organizations in another company
  3. The timing adversely impacts Arbonne as it is Restructuring through Chapter 11 Bankruptcy

Trump Network Not Part of the DSA (Direct Selling Association):

The best way to resolve this is to file a complaint with the DSA. However, when we checked the DSA Member website, Trump Network is not a member of the DSA. Go figure!

This is not surprising as the above Trump Network business strategies fall outside the DSA Code of Ethics and the DSA Guidelines against Proselyting.

Perhaps this is what Donald Trump means when he says the Trump Network will change the face of network marketing!

Who is EDG and MAB in the Trump Network?:

  • EDG stands for "The Executive Diamond Group" of the Trump Network
  • MAB stands for "The Marketer Advisory Board" of the Trump Network.
    The following definition is taken from a Trump Network web site.

    [Note: The MAB is a functional board that consistently brings ideas and strategies to the Company executive officers and management. In essence, they act on your behalf to ensure that the Company understands the needs, wants, and desires of all the Company Independent Marketers.]
    (taken from "Pre-Launch of the Trump Network"

So what this means is this is not an isolated case. Although an individual might not know that proselyting a person in another netowrk marketing company with a significant downline is unethical, the Marketer's Advisory Board for Trump Network should. After all, the person that sent us the email appears to just be following the policies as recommended by the MAB and EDG.

The first email came from the MAB, the Marketer Advisory Board for Trump Network and from the EDG, the Executive Diamond Network and they said in their email:

"Who has a huge organization in another company…"

This was then picked up by the a member of the Executive Diamond Group of the Trump Network who said:

"To put it plainly, we are looking for entrepeneurs with previous MLM experience that have significant downlines."

To be blunt, rather than build their own network of consumers, their strategy is to steal them from other network marketing companies. A strategy that is contrary to the DSA's Code of Ethics and the DSA Proselyting Guidelines.

Trump Network Links Provided in the Correspondence:

 

The above is very straight forward. No network marketing company, or group of persons within the company should attempt to get person(s) from another network marketing company to jump to the other company.

So what does all this mean? When it comes to Network Marketing, Donald Trump, You're fired"!


© 2010, VoiceWind. . .Greg Loveless. All rights reserved.

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Trump Network Violates DSA Network Marketing Ethics

Emails from the Trump Network's Marketer's Advisory Board & The Executive Diamond Group:

We recently received correspondence from those within and working on behalf of the Trump Network attempting to take advantage of those in Arbonne as the Arbonne Restructuring through Chapter 11 Bankruptcy continues.

As is our policy at VoiceWind.net, we believe the best remedy for inappropriate policies is to expose them to public scrutiny. So here are the facts.

The following are the most important portions of the correspondence.

"I know you have had much success with Arbonne, and to be frank with you, the company (meaning the owners and Mr. Trump himself) are looking for people just like yourself…
 
To put it plainly, we are looking for entrepeneurs with previous MLM experience that have significant downlines."

This person then attaches correspondence from his upline training team in Trump Network and the Tump Network Advisory Group.

"> Who do you know? Who could make a major impact on this company? Who has a huge organization in another company? Who is a person of significant influence?

> Your MAB and the EDG"

DSA (Direct Selling Association) Ethical Guidelines on Proselyting:
For the full information go to: www.dsa.org/ethics/proselyting/

"It is considered to be an improper practice when Company A, or its representatives, specifically and consciously targets the sales force of Company B with the intent of persuading Company B’s salespersons or employees not only to sell or work for Company A, but also to cease selling or working for Company B, thereby interfering with Company B’s business or contractual relations…it does apply to situations involving more than several persons, where the pattern, approach and timing of Company A would clearly indicate an intention to adversely impact on Company B. If Company B sends correspondence to Company A regarding alleged proselyting activity, Company A is expected to appropriately respond within 30 days after receipt of the correspondence."

How the Trump Network Violates DSA Proselyting Guidelines:

  1. They are contacting someone with success in Arbonne
  2. Those in other companies with significant downlines or huge organizations in another company
  3. The timing adversely impacts Arbonne as it is Restructuring through Chapter 11 Bankruptcy

Trump Network Not Part of the DSA (Direct Selling Association):

The best way to resolve this is to file a complaint with the DSA. However, when we checked the DSA Member website, Trump Network is not a member of the DSA. Go figure!

This is not surprising as the above Trump Network business strategies fall outside the DSA Code of Ethics and the DSA Guidelines against Proselyting.

Perhaps this is what Donald Trump means when he says the Trump Network will change the face of network marketing!

Who is EDG and MAB in the Trump Network?:

  • EDG stands for "The Executive Diamond Group" of the Trump Network
  • MAB stands for "The Marketer Advisory Board" of the Trump Network.
    The following definition is taken from a Trump Network web site.

    [Note: The MAB is a functional board that consistently brings ideas and strategies to the Company executive officers and management. In essence, they act on your behalf to ensure that the Company understands the needs, wants, and desires of all the Company Independent Marketers.]
    (taken from "Pre-Launch of the Trump Network"

So what this means is this is not an isolated case. Although an individual might not know that proselyting a person in another netowrk marketing company with a significant downline is unethical, the Marketer's Advisory Board for Trump Network should. After all, the person that sent us the email appears to just be following the policies as recommended by the MAB and EDG.

The first email came from the MAB, the Marketer Advisory Board for Trump Network and from the EDG, the Executive Diamond Network and they said in their email:

"Who has a huge organization in another company…"

This was then picked up by the a member of the Executive Diamond Group of the Trump Network who said:

"To put it plainly, we are looking for entrepeneurs with previous MLM experience that have significant downlines."

To be blunt, rather than build their own network of consumers, their strategy is to steal them from other network marketing companies. A strategy that is contrary to the DSA's Code of Ethics and the DSA Proselyting Guidelines.

Trump Network Links Provided in the Correspondence:

 

The above is very straight forward. No network marketing company, or group of persons within the company should attempt to get person(s) from another network marketing company to jump to the other company.

So what does all this mean? When it comes to Network Marketing, Donald Trump, You're fired"!


© 2010, VoiceWind. . .Greg Loveless. All rights reserved.

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VoiceWind Policy on Arbonne Restructuring Chapter 11 Bankruptcy Posts

VoiceWind.net Guiding Principle:

Our guiding principle at VoiceWind.net is to post only information that is true and factual and thus "informs the mind and the heart". Posts insulated from this principle are just noise and are not permitted.

This policy has been ahered to on all posts on the subject of Arbonne Restructuring through Chapter 11 Bankruptcy.

The following is taken from Steven Iwersen's book "Chasing Porcupines".

The Principle of the Broom:

"Every person has the right to receive direction and meaningful information that helps inform their decisions."
— Steven Iwersen, NSA from his book "Chasing Porcupines"

The Broom of Champions – Guidance:

1) Information: People need information. They need it in order to make decisions. They need it to inform their minds and their hearts with objective data that will shape their perspective. Information provides a starting point for reasonable dialogue; the lack of information starts the downward spiral of assumptions, rumor, misunderstanding and suspicion.
— Steven Iwersen, NSA from his book "Chasing Porcupines"

John Maxwell, who has spoken at Arbonne NTC says:

"People will be down on, what they are not up on."

© 2010, VoiceWind. . .Greg Loveless. All rights reserved.

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Bankruptcy Types & Arbonne Chapter 11 Restructuring

There is much confusion over the Arbonne Restucturing through Chapter 11 Bankruptcy. The following outlines the types of bankruptcies and how the Chapter 11 Bankruptcy Arbonne has chosen to utilize works.

Most people are not aware that there are seven types of bankruptcy. Only attornies and those who have experienced bankruptcy would know this.

The seven types of bankruyptcy are:

  1. Chapter 7: For individuals & businesses. A liquidation of assests.
  2. Chapter 9: For municipalities.
  3. Chapter 11: For individuals & businesses. A restructuring of debt.
  4. Chapter 12 (a&b): For family farmers and fisherman.
  5. Chapter 13 (a&b): For individuals with regular income.


What is bankruptcy:

Bankruptcy allows a debtor who is unable to pay creditors to divide up assets among creditors.

The purpose of the bankruptcy process is to make sure all creditors are treated equally and that creditors cease all collection efforts.

Some bankruptcy procedures allow a debtor to remain in business. The increased cash flow from the restructuring allows the business to pay creditors.

When people think of bankruptcy it is usually Chapter 7 that they have in mind. In Chapter 7 all an individual's or a business' assets are liquidated and the funds are distributed to the creditors.

For example say a company had $25,000 in assets but owed $100,000 to creditors and was unable to make payment on this debt. Through Chapter 7 Bankruptcy the company's assets are sold off for $25,000. The creditors would then receive 25 cents on the dollar.

Arbonne Bankruptcy & Chapter 11 Restructuring:
Arbonne is NOT in Chapter 7 Bankruptcy. They are using Chapter 11. Chapter 11 is a restructuring of debt where the debtor, in this case Arbonne, proposes a repayment plan or compensation plan to the creditors prior to filing Chapter 11 in court.

In Arbonne's case the creditors have agreed to exchange debt Arbonne owes them for a percentage of ownership in Arbonne.

Because the court filings began last week this means the creditors have already agreed to the prepackaged plan.

Now that court filing occurred it takes approximately 45 days for the process to be finalized.

For more and current information see my post on Arbonne Chapter 11 Bankruptcy & Restructuring Links.

© 2010, VoiceWind. . .Greg Loveless. All rights reserved.

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Arbonne Chapter 11 Bankruptcy & Restructuring Links

With Arbonne's public announcement of the Restructuring through Chapter 11 Bankruptcy procedures, there have been many Consultant's contacting us as to what this means for the company and the Consultants.

My wife, ENVP Linda Loveless, has notified her team about the Arbonne Restructuring throughs Chapter 11 Bankruptcy. Since this process was initiated, Arbonne Corporate has been very timely and efficient in communicating the facts to the VPs.

My intent is to post information on this web site as it comes available. We will also address any miss information that is brought to our attention as well.

For all the post on the Arbonne Restructuring & Bankruptcy click here on the Arbonne Bankruptcy Category.

The links below provide the official information as of Friday, January 29th, 2010.

  1. Arbonne Restructuring - Interview of Kay Napier, CEO of Arbonne
  2. Letter to Our Valued Customers Regarding Arbonne Restructuring & Bankruptcy:
  3. Frequently Asked Questions about the Arbonne Restructuring & Bankruptcy
  4. Press Release Regarding Arbonne Restructuring & Bankruptcy:
  5. Court Filings and Claims Information Regarding Arbonne Restructuring and Bankruptcy
  6. Arbonne Blog & Consultant Comments on Arbonne Restructuring and Bankruptcy:
  7. SEC Information about Chapter 11 Bankruptcy:
  8. US Courts Information About Chapter 11 Bankruptcy:

As more information comes available, we will post it.

© 2010, VoiceWind. . .Greg Loveless. All rights reserved.

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