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Plan's approval lets Eurofresh exit bankruptcy
WILLCOX - Eurofresh's reorganization plan has been approved, the company announced Wednesday.
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 debt holders to convert more than $200 million of debt into equity. The deal states Eurofresh will get $35 million to repay debt and ensure financial stability to keep investing in strategic capital expenditures.
U.S. Bankruptcy Court Judge Charles G. Case II confirmed its reorganization plan. The court in Phoenix originally confirmed the document on Oct. 16.
Eurofresh also reached a consensual resolution with secured lenders and the U.S. Department of Labor, which settled all claims against the company.
Dwight Ferguson, chief executive officer, said the investment is a vote of confidence in employees and the mission to grow high-end, pesticide-free produce.
"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, he said.
"I'm 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."
Eurofresh's growing and packaging operations in Willcox and Snowflake continued normal operations during the reorganization. The company's customers, including restaurateurs, grocers and the public, saw no change in the quality of the company's produce and services, Ferguson said.
Eurofresh is the sixth largest employer of Cochise County residents, with nearly 1,200 employees, Ferguson said, many of them from Cochise County.
Eurofresh's Willcox site, is about 20 miles north of the Willcox, just inside Graham County. It has 274 acres of greenhouses, growing hydroponic tomatoes, cucumbers and peppers.
An additional 44-acre operation in Snowflake, Ariz., employs another 300 people.
(Managing Editor Ainslee S. Wittig contributed to this report.)
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 debt holders to convert more than $200 million of debt into equity. The deal states Eurofresh will get $35 million to repay debt and ensure financial stability to keep investing in strategic capital expenditures.
U.S. Bankruptcy Court Judge Charles G. Case II confirmed its reorganization plan. The court in Phoenix originally confirmed the document on Oct. 16.
Eurofresh also reached a consensual resolution with secured lenders and the U.S. Department of Labor, which settled all claims against the company.
Dwight Ferguson, chief executive officer, said the investment is a vote of confidence in employees and the mission to grow high-end, pesticide-free produce.
"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, he said.
"I'm 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."
Eurofresh's growing and packaging operations in Willcox and Snowflake continued normal operations during the reorganization. The company's customers, including restaurateurs, grocers and the public, saw no change in the quality of the company's produce and services, Ferguson said.
Eurofresh is the sixth largest employer of Cochise County residents, with nearly 1,200 employees, Ferguson said, many of them from Cochise County.
Eurofresh's Willcox site, is about 20 miles north of the Willcox, just inside Graham County. It has 274 acres of greenhouses, growing hydroponic tomatoes, cucumbers and peppers.
An additional 44-acre operation in Snowflake, Ariz., employs another 300 people.
(Managing Editor Ainslee S. Wittig contributed to this report.)
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John Arbuthnot wrote on Nov 7, 2009 6:42 PM:
Did the Arizona Department of Corrections, and by extension, Arizona taxpayers, lose money?
Did taxpayers subsidize this company? Did Arizona Correctional Iindustries ever have to pay inmate wages while waiting for payment from
Eurofresh? "