Eurofresh Inc., a year-round producer and marketer of greenhouse tomatoes, says the Willcox, Ariz.-based company will exit Chapter 11 bankruptcy protection in late November.
Eurofresh says U.S. Bankruptcy Court Judge Charles G. Case II has confirmed the company’s reorganization plan. The confirmation indicates Eurofresh and its subsidiary, Eurofresh Produce Ltd., will exit Chapter 11 bankruptcy.
As part of its recapitalization process, Eurofresh entered into a settlement with the majority of its existing debt holders to convert more than $200 million of debt into equity. Under the agreement 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.
“Our senior management is pleased that the end of our reorganization is now in clear sight,” said Dwight Ferguson, Eurofresh’s chief executive officer.
Ferguson says the reorganization has helped the company dramatically improve its capital structure. Eurofresh will continue to support and invest in its long-term business objectives in Arizona.
“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,” Ferguson said.
Eurofresh’s growing and packaging operations in Willcox and Snowflake, Ariz., continued normal operations during the reorganization.