US: NatureSweet announces intent to acquire EuroFresh Farms
On January 27, EuroFresh filed for Chapter 11 bankruptcy with the Federal Bankruptcy Court in Tucson; the acquisition will then take place through a 363 sale. A 363 sale allows a company filing for bankruptcy to immediately market its assets to bidders, with the approval of the United States Bankruptcy Court.
Under Chapter 11 of the bankruptcy code, mainly used by businesses, debtors are protected from legal actions like lawsuits and foreclosure while they develop a plan to repay creditors.
Eurofresh, which filed for bankruptcy Monday in Tucson, said the acquisition will take place through a special procedure that allows a company filing for bankruptcy to immediately market its assets to bidders, subject to approval of the U.S. Bankruptcy Court.
The company had not yet filed its total asset and debt figures, but it reported assets of between $10 million and $50 million, with liabilities of between $50 million and $100 million. Eurofresh estimated that no funds will be available to repay unsecured creditors, whose debts are not backed by collateral. The company has more than $11 million in unsecured debt, according to bankruptcy documents.
The company's biggest unsecured creditor is Southwest Gas Corp., which is owed $1.5 million, according to a list filed by the company. Other major unsecured creditors include Oklahoma-based John Christner Trucking, which is owed nearly $1.3 million; the Phoenix law firm Squire, Sanders & Dempsey LLP, owed $1.1 million; a California packaging company owed $989,000; and a fertilizer company owed about $770,000.
“Bringing EuroFresh products into the NatureSweet family provides us with new product offerings and U.S. growing facilities that we are confident will provide significant value to our customers,” said Bryant Ambelang, chief executive officer and president of NatureSweet. “This acquisition is a great opportunity to continue our growth while providing customers with the premium branded tomatoes they have come to expect from NatureSweet. For the company, our customers and our associates, this is the right thing to do at the right time.”
Johan van den Berg, chief executive officer of EuroFresh Farms, added, “We are pleased to have received this offer from a financially strong organization that will continue to invest in the business of growing and selling greenhouse tomatoes and cucumbers.”
For more information:
Denise Clarke
Tel: +1 512 899 0004
[email protected]
Source: azstarnet.com
