Arizona-Based Tomato Producer Files for Ch.11 Bankruptcy

Eurofresh Farms, an Arizona-based tomato producer, has filed for bankruptcy protection under Chapter 11.

Eurofresh Inc. said it plans to use the reorganization period to recapitalize the company, which also grows cucumbers and peppers.

The decision to file for bankruptcy was "largely taken because of the debt load the company has acquired as it has grown so rapidly in recent years," said CEO Dwight Ferguson. "We're still profitable, we're still cash positive. We just have a big debt burden we need to correct."

Ferguson said the company, which currently employs about 1,600 employees, plans to submit a plan in May and complete the reorganization during the third quarter. He also said the reorganization should appear seamless to consumers, with the bankruptcy filing not affecting the company's operations in any way.

For more information about Chapter 11 bankruptcy, please contact a bankruptcy attorney near you.