PHOENIX, Sept. 16 /PRNewswire/ -- NutraCea (OTC Pink Sheets: NTRZQ), a world leader in stabilized rice bran (SRB) nutrient research and technology, today announced that NutraPhoenix, LLC, a wholly owned subsidiary of NutraCea, sold its real property with all improvements thereon located at 4502 W. Monterosa Street in Phoenix, Arizona (the "Phoenix Facility") to David Turner International, LLC for $4,500,000.
W. John Short, Chairman and Chief Executive Officer of NutraCea, stated, "We are extremely pleased to have completed the sale of this non-core property. The Phoenix Facility was the last major asset related to the infant cereal business sold to Kerry Ingredients earlier this year. Its sale represents another important step in our plan to monetize non-core assets in order to pay secured and unsecured creditor obligations as part of NutraCea's efforts to exit bankruptcy on or before the November 30, 2010 target date set out in our pending Plan of Reorganization as amended and filed with the bankruptcy court on August 10, 2010 (the "Amended Plan").
"Consistent with the 100% creditor pay out commitment described in our Amended Plan, the proceeds from this sale have allowed NutraCea to pay in full the remaining balance due to our secured lender of approximately $1.8 million, bringing total payments to Wells Fargo Capital Finance to over $4.8 million since filing our Chapter 11 bankruptcy petition on November 11, 2009. I want to personally thank the Wells Fargo Capital Finance team in Phoenix for not only providing financing to NutraCea during this challenging period, but also for their advice and support as we have worked through our reorganization.
"In addition to paying Wells Fargo Capital Finance, proceeds of approximately $1.4 million from the sale have been used to repay all principal, interest and legal expenses related to a number of mechanics' liens attached to the Phoenix Facility, along with property taxes and closing costs related to this transaction. Resolving these matters has eliminated ongoing debt service and maintenance costs related to the property and will free up a significant amount of management time that can now be directed towards our core businesses.
"The remaining net sale proceeds will be used to provide funding for our exit from bankruptcy on or before November 30 and reduce unsecured creditor obligations, collectively totaling $1.3 million.
"The sale of the Phoenix Facility is another major milestone on the road to successful emergence from bankruptcy. I want to offer special thanks to our employees who have continuously done double and triple duty to complete this transaction and reposition NutraCea for success as we prepare for operations in a post-bankruptcy environment."
Forward Looking Statement
This release contains forward-looking statements, including statements about the Company's successful restructuring and exit from bankruptcy. 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.
About NutraCea
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 a waste 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/.
NutraCea
CONTACT: Investor Relations: Marilynn Meek, Financial Relations Board,
+1-212-827-3773, mmeek@frbir.com
Web Site: http://www.nutracea.com/
