PRLog (Press Release) Oct 28, 2009 Eurofresh Inc., DBA Eurofresh Farms, one of Southern Arizonas largest employers and the leading year-round producer and marketer of greenhouse tomatoes in the United States, announced today that U.S. Bankruptcy Court Judge Charles G. Case II confirmed its reorganization plan. The court in Phoenix originally confirmed the document on Oct. 16, 2009.
The confirmation indicates Eurofresh and its subsidiary, Eurofresh Produce Ltd., will exit Chapter 11 bankruptcy protection by the end of November.
As part of its recapitalization process, the company had entered into a settlement with the majority of its existing debt holders to convert more than $200 million of debt into equity. The agreement states that Eurofresh will receive $35 million in new capital to repay debt and ensure financial stability to continue investing in strategic capital expenditures.
In addition, Eurofresh reached a consensual resolution with its secured lenders and the U.S. Department of Labor, which settled all claims against the company.
Dwight Ferguson, chief executive officer of Eurofresh, said the capital investment is a vote of confidence in their employees and mission to grow high-end, pesticide-free produce for customers.
Our senior management is pleased that the end of our reorganization is now in clear sight, he said. We expect to complete our refinancing and be out of bankruptcy very soon.
According to Ferguson, the reorganization has helped the company dramatically improve its capital structure. Financially stronger, Eurofresh can continue supporting and investing its long-term business objectives in Arizona.
Im proud that we retained virtually all of our employees and maintained all key vendor and customer contracts throughout this process, thereby strengthening the company’s relationships with our partners, he said. Our ability to complete the restructuring this quickly and stay on plan with our customer service, sales and production operations is good news for all stakeholders.
Eurofreshs growing and packaging operations in Willcox and Snowflake, Ariz., continued normal operations during the reorganization. The companys customers, including restaurateurs, grocers and the public, saw no change in the quality of the companys produce and services, Ferguson said.
Source: Eurofresh Inc.