Eurofresh confirms noteholder-backed restructuring plan
The court confirmed Eurofresh, Inc. and Eurofresh Produce, Ltd.'s First Amended Joint Plan on Oct. 28, moving the case from liquidity preservation into implementation after a six-month Chapter 11. The Debtors entered bankruptcy on Apr. 21 as an operating hydroponic tomato and cucumber grower with seven Arizona greenhouse facilities spanning more than 318 acres, about 706 employees, and additional contract and inmate labor. First-day papers identified Silver Point Finance as administrative agent under a $69.9 million credit facility, SP Eurofresh LLC as lessor under a roughly $14.5 million Snowflake facility sale-leaseback, $170 million of senior notes, $39.5 million of subordinated notes, and about $10.3 million of general unsecured claims; the stated pressure points were crop disease, labor and regulatory issues, fuel costs, and overleverage source filing source filing.
The confirmation record shows objections from Silver Point, Wells Fargo Foothill, Graham County, and Arizona were resolved or overruled, with Classes 3 and 4 accepting, Classes 1A and 1B deemed accepting after settlements, and Classes 5-7 deemed rejecting but crammed down. On the effective date, assets vest in Reorganized Eurofresh free and clear, the stay gives way to plan injunctions, and the order approves the new credit facility, PIK preferred stock, and subordinated PIK notes tied to the investment and plan support structure source filing source filing.