A massive food brand now declares an unexpected bankruptcy after carrying a whopping $190 million of debt, sources report.
Most Americans don’t know the companies and farming operations that produce their produce.
Trinitas Farming, a large provider of almonds does not market its brand despite the size of its operation.
Now the company has now filed for Chapter 11 bankruptcy protection.
Trinitas Farming is owned by Trinitas Partners, a Redwood City, California private-equity firm that began acquiring almond ranches in 2015 and now runs 17 of them covering 8,000 acres, according to the SJVSun.
Americans probably won’t see their almond supplies disrupted.
The company plans to keep producing as it attempts to sort out its finances.
Trinitas disclosed in its bankruptcy filing that it had essentially run out of cash and plans to sell its farms and other assets.
The company attributed its problems to its heavy debt load and low almond prices. It also cited lower yields at newer farms, making it impossible to produce profitable crops.
“Debts include a $130 million term loan extended by Rabo Ag in November 2022, plus an additional $31 million in ‘delayed draw’ loans,” the Business Journal of Fresno, Calif., reported.
“Debts owed to 20 of the largest unsecured creditors total more than $26.6 million.
Its largest unsecured creditor is The Almond Co. hulling operation in Madera, with a $9.2 million claim.
The Harvesting Group in Fresno is owed $4.8 million.”
The company has asked the U.S. Bankruptcy Court for the Northern District of California to approve a $30 million funding plan as it enters a crucial period during the almond growing season.
If those funds are not approved quickly, the company could see a major interruption in its ability to grow almonds.
Also Read: This Massive Restaurant Is Now Closing 41 Locations
Other Economy News Today
A big appliance company now files an unexpected bankruptcy after racking up a whopping $832 million in debt, sources report.
Appliance component manufacturer Robertshaw U.S. Holdings filed for Chapter 11 bankruptcy protection on Thursday, seeking to cut $670 million in debt and resolve litigation between its lenders, reports Reuters.
Robertshaw manufactures more than 10,000 sophisticated controls for commercial and home appliances, per its website.
Primary applications include controls for clothes washers and dryers, dishwashers, refrigerators, electric and gas cooking, ice makers, fluid dispensing, storage water heaters, gas valves for space/central heating, and automotive/off road temperature and fluid controls.
The company, owned by private equity firm One Rock Capital Partners, entered bankruptcy with a restructuring agreement supported by a majority of its lenders, according to documents filed in Houston, Texas bankruptcy court.
The company will also explore a bankruptcy sale as an alternative to its debt restructuring.
“Robertshaw may not be a household name, but its products appear in almost every household,” attorney George Klidonas said at a Thursday court hearing in Houston.
The company blames the pandemic for its struggles.
Robertshaw said it was unable to sustain its high debt level in the face of rising interest rates and lingering supply chain challenges that arose during the COVID-19 pandemic.
The Itasca, Illinois-based company said it has $832 million in debt.
In the last nine months of 2023, Robertshaw generated a gross profit of $58.8 million.
The company’s efforts to address its debt outside of bankruptcy spurred litigation between its lenders in 2023.
Robertshaw will seek to resolve that dispute in bankruptcy, either through mediation or litigation in bankruptcy court, according to court documents.
The company has lined up a $56 million bankruptcy loan funded by its majority lender group, according to court filings, and will seek bankruptcy court approval for that loan at a later date.
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Also Read: A US Company Now Declares An Unexpected Bankruptcy
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