Eurofresh Farms prepares to exit Chapter 11
Eurofresh Inc, dba Eurofresh Farms, one of southern Arizona’s largest employers and a year-round producer and marketer of greenhouse tomatoes, announced that US Bankruptcy Court Judge Charles G Case II confirmed its reorganization plan. The court in Phoenix AZ originally confirmed the document Oct 16, 2009.
The confirmation indicates Eurofresh and its subsidiary, Eurofresh Produce Ltd, will exit Chapter 11 bankruptcy protection by the end of November 2009.
As part of its recapitalization process, the company had entered into a settlement with most 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.
Eurofresh also reached a consensual resolution with its secured lenders and the US Department of Labor, which settled all claims against the firm.
According to Dwight Ferguson, chief executive officer of Eurofresh, the reorganization has helped the company improve its capital structure. Financially stronger, Eurofresh can continue supporting and investing its long-term business objectives in Arizona.
Eurofresh’s growing and packaging operations in Willcox and Snowflake AZ continued normal operations during the reorganization. The company’s customers, including restaurateurs, grocers, and the public, saw no change in quality of the company’s produce and services, Ferguson said.
For more information, visit www.eurofresh.com.