Sun World International Inc, a wholly owned subsidiary of Cadiz Inc, has filed a voluntary petition for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Central District of California, Riverside Division.
As part of the filing, the fresh-produce provider will obtain a seasonal financing package that provides for working capital through the 2003-04 growing seasons. The money will allow the company to access to up to $40 million in “debtor in possession” (DIP) financing.
“The filing was necessary to protect our employees, customers, growers, and licensees, and also to allow Sun World to meet its seasonal working capital requirements,” said Tim Shaheen, Sun World's chief executive officer. “This is a healthy company with a strong core business that performed particularly well in 2002. However, the demands of seasonal agriculture and the capital structure of the company required us to find new financing through bankruptcy protection.”
Current management will remain in place. Sun World has retained the law firm Klee, Tuchin, Bogdanoff & Stern LLP as outside counsel to help manage the bankruptcy process.