Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Eurofresh Farms Seeks Chapter 11 Bankruptcy Protection for a Second Time
Author: Joel R. Glucksman
Date: February 14, 2013
Key Contacts
Back
North American-based tomato-producer Eurofresh Farms has sought Chapter 11 bankruptcy protection in an Arizona courtroom. The filing marks the second time in four years that Eurofresh has sought protection under bankruptcy law.
The company announced its plan to sell assets to its major rival, NatureSweet Ltd., which has offered to purchase the majority of the company’s assets through a bankruptcy auction. Both companies are large growers and distributors of tomatoes. Eurofresh said the acquisition, pending the approval of a U.S. Bankruptcy Court, would take place quickly and will not hinder its current operations. In its court filing, the company blamed its financial difficulties on a slump in tomato prices. It also reported assets of between $10 million and $50 million, with liabilities of between $50 million and $100 million.
“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,” said Johan van den Berg, chief executive officer of Eurofresh Farms.
Eurofresh named a long list of unsecured creditors, including Southwest Gas Corp. which is owed $1.5 million, John Christner Trucking which is owed nearly $1.3 million, and a California packaging company owed $989,000. In its filing, the distributor estimated that it would lack the funds to repay its unsecured creditors.
Eurofresh was also forced to seek bankruptcy protection in 2009 citing excessive debt and operating issues, including high interest costs, limited production due to a plant virus, and rising energy costs. It exited bankruptcy as a reorganized company eight months after it filed in April and said that its operating issues have since been resolved.
The company said that none of Eurofresh’s 1,100 employees in Arizona will be laid off.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Failing to Comply With NJ Rent Control Exemption May Prove Costly
What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing. A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]
Author: Patrick T. Conlon
Crypto Securities Law: When Tokens Become Investment Contracts
The application of traditional federal securities laws to crypto assets continues to evolve. In some cases, the Securities and Exchange Commission (SEC) considers tokens and other digital assets to be securities. This makes them subject to federal securities law, including the Securities Act of 1933 and the Securities Exchange Act of 1934. This classification has […]
Author: Bryce S. Robins
The Due Diligence Process for NY Condominiums and Cooperatives
While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]
Author: Jesse M. Dimitro
Smart Contract Legal Issues: Drafting Agreements for Blockchain
Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Author: Bryce S. Robins
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.