NutraCea Receives Okay For $6.75M DIP Loan
Health science company to sell non-core assets as part of its restructuring.
November 16, 2009
NutraCea, a health science company that filed for Chapter 11 bankruptcy protection last week, has received court approval for a $6.75 million debtor-in-possession loan facility from Wells Fargo Bank.
The company, which filed for Chapter 11 protection on Monday as part of its previously announced plans to cut costs and sell assets in non-core businesses, received approval from the bankruptcy court in Phoenix on Friday for the $6.75 million DIP financing facility.
The DIP is being provided by Wells Fargo Bank and is secured by facilities, equipment, accounts receivable and some of its intellectual property assets, according to court filings.
NutraCea, incorporated in California and headquartered in Phoenix, has between $10 million to $50 million in liabilities and between $50 million to $100 million in assets, according to the filing. NutraCea owes approximately $3.5 million to Wells Fargo under an old credit facility, the company said in a release.
NutraCea’s subsidiaries are not included in the filing, the company said in a release.
The case number is 2:09-bk-28817-CGC and is being overseen by Judge Charles G. Case 2nd.
NutraCea’s bankruptcy counsel is Forrester, Worth & Green of Phoenix. Sierra Consulting Group is the company's financial advisor.
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