Old New York Seltzer seeks new equity investors: company operates under Chapter 11 bankruptcy shield.

Original New York Seltzer Co., which has been operating under Chapter 11 bankruptcy protection since last month, is looking for a few good equity investors to help revive the profitability of its soft drinks.

"We're showing good cash flow right now," Chairman Alan Miller told the Business Journal. "And if our sales maintain 1993 levels, we expect a profit of about $500,000 for 1994."

But the company, a general partnership based in Walnut, near the City of Industry, has legal and financial problems to iron out.

The firm filed for Chapter 11 bankruptcy protection on Oct. 14, citing assets of about $1.9 million and debts of $3.2 million, according to Timely Info Inc., an L.A.-based data service.

Two weeks ago, U.S. Bankruptcy Court Judge Vincent Zurzulo granted the company's request that the money it is generating stay in business for the time being.

"We're in the process of working things out with the creditors so the company can continue on," explained company attorney Bruce Landau, a partner at the Beverly Hills law firm Rosky Landau Stahl & Sheehy.

Last Tuesday (Nov. 16), company officials met with the creditors for the first time since the filing. About 30 of the 186 creditors were represented, including packaging products manufacturer Owens-Illinois of Toledo, Ohio, which is owed $1.2 million. Attorney Martin Zohn, a partner at the Century City law firm of Proskauer Rose Goetz & Mendelsohn, represented Owens-Illinois at the meeting.

The close to three hour meeting, said Zohn, "was an opportunity for the trustee, creditors and other interested parties to ask questions and learn about the company's plans."

But there were no real answers, he said.

"What is needed here is something major," Zohn said. "The company needs to be reorganized either through Alan Miller or through the creditors."

In fact, Zohn said he intends to submit a plan to the court within 10 days, seeking its permission to solicit creditors' backing. If the court approves this move, it will also set a date for the next creditors meeting.

"It's unusual for a creditor to take this initiative this early in the case, but I feel we have to," said Zohn. "The important thing at this point is to avoid the endless quibbling by lawyers and fiddling by businessmen."

Meanwhile, Zohn said after the meeting, "there are a number of buyers interested in purchasing the company." In addition to the names given by Alan Miller at the meeting, Zohn said he knew of "several other potential buyers."