NutraCea (Pink Sheets: NTRZ) a world leader in stabilized rice bran (SRB) nutrient research and technology, announced today 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.
Chief Executive Officer, W. John Short said, "We are pleased with the Court's decision to approve the DIP financing provided through Wells Fargo Bank. 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."
NutraCea filed a voluntary petition under Chapter 11 on November 10, 2009 in order to restructure its operations under court supervised protection. That filing did not include any of the Company's subsidiaries.
NutraCea is a world leader in production and utilization of stabilized rice bran. NutraCea holds many patents for stabilized rice bran (SRB) production technology and proprietary products derived from SRB. NutraCea's proprietary technology enables the creation of food and nutrition products to be unlocked from rice bran, normally an underutilized by-product of standard rice processing. More information can be found in the Company's filings with the SEC and by visiting our website at http://www.NutraCea.com.
This release contains forward-looking statements. Actual results may differ from those projected due to a number of risks and uncertainties, including, but not limited to the possibility that some or all of the pending matters considered by the Company may not proceed as contemplated and the matters specified in the Company's filings with the Securities and Exchange Commission. These statements are made based upon current expectations that are subject to risk and uncertainty. The Company does not undertake to update forward-looking statements in this news release to reflect actual results, changes in assumptions or changes in other factors affecting such forward- looking information. Assumptions and other information that could cause results to differ from those set forth in the forward-looking information can be found in the Company's filings with the Securities and Exchange Commission, including the Company's most recent periodic report.