NutraCea Makes Final Payments Under Plan of Reorganization
January 20 2012 - 8:00AM
Marketwired
NutraCea (OTCQB: NTRZ) (PINKSHEETS: NTRZ), a global leader in the
production and marketing of value added products derived from rice
bran, today announced final payment of all amounts due to creditors
under the terms of its Plan of Reorganization.
The Company confirmed today that it has met all of its
obligations under the terms of the Amended Plan of Reorganization
approved by the US Bankruptcy Court.
W. John Short, Chief Executive Officer of NutraCea, stated, "We
are pleased to have made the final payments due to all creditors
under the Amended Plan of Reorganization. We are proud to have paid
in full all of the lenders, suppliers and vendors who supported
NutraCea during the entire reorganization process that began with
our Chapter 11 filing in November 2009 and culminated in our final
payments to creditors at the beginning of this week. No creditor
that participated in the court supervised restructuring process
lost money doing business with NutraCea.
"NutraCea used the Chapter 11 process exactly as it was
intended. Under the supervision of the bankruptcy court, we
restructured our business, repaid all creditors in full and
protected the interests of the shareholders who invested in
NutraCea prior to the bankruptcy filing. I want to offer special
thanks to Cary Forrester, bankruptcy counsel who represented
NutraCea throughout the proceedings, for his guidance and wise
counsel in guiding us through this complex process."
The Company's bankruptcy counsel, S. Cary Forrester, of
Forrester & Worth, in Phoenix, Arizona, commented: "This is an
extraordinary outcome. In the vast majority of Chapter 11 filings,
the pre-petition owners lose most or all of their ownership
interests and unsecured creditors receive pennies on the dollar. In
fact, according to one study of bankruptcy outcomes, less than 10%
of Chapter 11 debtors confirm and complete a plan of
reorganization. In this case, NutraCea not only exited Chapter 11
intact and paid all of its debts in full, but it did so in a way
that allowed its shareholders to retain 100% of their ownership
interests in the Company."
Forward-Looking Statements This release
may contain forward-looking statements. These statements are made
based upon current expectations that are subject to known and
unknown risks and uncertainties. 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 NutraCea's
filings with the Securities and Exchange Commission, including
NutraCea's most recent periodic reports.
About NutraCea NutraCea is a world leader
in production and marketing of value added products derived from
rice bran. NutraCea holds many patents for processed 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 co-product of rice milling. NutraCea also produces
rice based consumer health supplements which can be found at
http://www.nutraceaonline.com. More information can be found in the
Company's filings with the SEC and by visiting our website at
http://www.NutraCea.com.
Investor Contact: Alliance Advisors, LLC Alan Sheinwald
President & Founder (914) 669-0222 Email Contact