NutraCea files for bankruptcy

Wed Nov 11, 2009 2:23pm GMT
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Nov 11 (Reuters) - NutraCea (NTRZ.PK: Quote, Profile, Research) said on Tuesday that it filed for Chapter 11 protection in an Arizona bankruptcy court to restructure its operations, reduce overhead and sell non-core assets.

In a statement, the company said none of its subsidiaries were included in the bankruptcy filing, and that Wells Fargo Bank had agreed to provide debtor-in-possession (DIP) financing of $6.75 million.

Companies rely on DIP financing to finance everyday operations while they reorganize under Chapter 11.

NutraCea listed total assets of $83.7 million and total debt of $18.9 million in court papers.

The company, which processes and converts rice bran into an ingredient that has applications in food products, said it has six facilities in four states and employs about 70 people.

The case is In re: Nutracea, U.S. Bankruptcy Court, District of Arizona, No. 2:09-bk-28817. (Reporting by Santosh Nadgir in Bangalore; Editing by Ratul Ray Chaudhuri)

 
 

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