NutraCea receives court approval for DIP financing
November 16, 2009
by Eric Schroeder
PHOENIX — NutraCea, a provider of stabilized rice bran nutrient research and technology, on Nov. 12 received approval from the U.S. Bankruptcy Court for the District of Arizona for its motion to approve senior secured post petition financing, along with other routine first day motions. With the approval, NutraCea, which filed for Chapter 11 bankruptcy on Nov. 10, now has access to the funds in the Debtor-in-Possession (DIP) financing facility provided through Wells Fargo Bank, N.A.
The DIP facility provides lines of credit totaling $6,750,000 and a net increase in available funding in excess of $3 million.
"We are pleased with the court’s decision to approve the DIP financing provided through Wells Fargo Bank," said W. John Short, chief executive officer. "With access to working capital in place we can return to more normal day-to-day operations and focus on implementing the next steps in our restructuring plan. While there is a lot of work before us in the coming months, we remain optimistic about our management team’s ability to successfully restructure the company and emerge as a more focused, stronger and viable company."