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
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Author: Robert E. Levy
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities
Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
Author: Dan Brecher
Why Compliance Monitoring Matters for NY and NJ Businesses
Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher
When Are New Jersey Business Owners Personally Liable for Corporate Debt?
New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich
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.