Key Developments For NutraCea
NutraCea (NTRZ.PK) (USA Pink Sheets)
NutraCea Obtains Court Approval For DIP Financing And Other First Day Motions
NutraCea announced that its Motion to Approve Senior Secured Post Petition Financing, along with other routine first day motions, was approved on November 12, 2009 in the U.S. Bankruptcy Court for the District of Arizona. NutraCea 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. Those funds, combined with cash flow from operations, will allow the Company to resume more normal day-to-day operations, including payment of post-petition obligations to vendors and professional service providers and payment of employee wages and benefits, all in the normal course of business going forward.
NutraCea Files For Protection Under Chapter 11 To Restructure Operations
NutraCea announced that the Company has filed a voluntary petition for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Arizona. None of the Company's subsidiaries, including its Brazilian rice bran oil operation, Irgovel, were included in the bankruptcy filing. The Company plans to use the protection provided by the courts under Chapter 11 to restructure its operations, reduce overhead and sell non core assets, in line with the previously announced strategy of focusing on its core businesses of stabilized rice bran, rice bran oil, nutraceuticals and baby cereal.
NutraCea Announces CEO Change-Form 8-K
NutraCea reported in its Form 8-K that effective October 23, 2009, James C. Lintzenich resigned from his position as Interim Chief Executive Officer (CEO). On October 23, 2009, W. John Short was appointed as CEO.
NutraCea Names James C. Lintzenich As Interim CEO
NutraCea announced that James C. Lintzenich, chairman of the Audit Committee has been appointed to the role of Chief Executive Officer (CEO) on an interim basis. Mr. Lintzenich will replace Brad Edson, who has resigned from his positions with the Company as President, CEO and a member of its Board of Directors effective immediately. Mr. Edson will serve as a consultant to the Company as requested by Mr. Lintzenich and the Board of Directors during a transition period for up to two months following Mr. Lintzenich's appointment. NutraCea has commenced a formal search to identify a permanent CEO.
Federman & Sherwood Announces Securities Class Action Lawsuit Against NutraCea
NutraCea announced that a class action lawsuit was filed in the United States District Court for the District of Arizona against the Company. The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material misrepresentations to the market which had the effect of artificially inflating the market price. The class period is from August 14, 2007 through February 23, 2009.
