NutraCea Corp. Files for Chapter 11 Bankruptcy
Posted on Nov 13, 2009 1:00pm PST
Sacrament, California -- NutraCea Corp. filed for
Chapter 11 bankruptcy protection this week. The company is well-recognized for producing rice bran and other types of dietary supplements in the U.S.
In 2007, the company moved its headquarters from
Phoenix to Sacramento. However, company leaders filed the Chapter 11 petition in the U.S. Bankruptcy Court in Phoenix. The company did not list any of its subsidiaries in its petition.
At this time, NutraCea is saying that it plans to restructure its operations. The ultimate goal is to reduce its overhead costs and sell assets that are considered non-core. The corporation also plans to focus on promotion of its essential assets, like rice bran, rice bran oil, nutraceuticals and baby cereal.
Along with its bankruptcy filing, NutraCea applied for credit lines which equal over $6.75 million. The company said that earned revenue along with the new lines of credit will allow it to pay employees' wages and also pay for daily operational expenses.
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