Milling & Baking News - December 6, 2005 - 29

PASTA

industry

PASTA

perspective

said in announcing the A.&M. engagement.
"A focus of the A.&M. team will be to improve the performance of the company's
portfolio of pasta brands and to solidify and
improve its position as a leader in providing
food service, industrial and private label dry
pasta products."
In October, AIPC said Horst Schroeder,
the company's longtime chairman of the
board, had resigned. William R. Patterson,

an AIPC director since 1997, was elected
chairman. Mr. Patterson is chairman of the
AIPC audit committee.
Also in October, AIPC announced
that "certain of the company's historical
financial statements should no longer
be relied upon."
AIPC said the announcement reflected
the findings of a continuing review of its
financial statements, subsequent to the Au-

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industry

perspective

gust disclosure that a $60.7 million charge
against earnings would be taken.

New World Pasta looks to emerge
AIPC is not the only the only pasta company currently struggling. New World Pasta
Co., Harrisburg, Pa., has been operating under bankruptcy for 18 months but hopes to
turn a corner shortly.
In May 2004, the company filed to reorganize under Chapter 11 of the federal bankruptcy code, and a month later, Lisa J. Donahue, a
turnaround specialist, was named c.e.o.
At the time of the filing, the company
said it had obtained $40 million in financing
needed to continue operating.
New World announced two months ago
that it had secured a binding agreement from
Morgan Stanley Senior Funding, Inc., GE
Commercial Finance and Wells Fargo Foothill, Inc., for $240 million in new financing.
The company said it would use the new
funds to help it emerge from bankruptcy.
"We are delighted to announce this commitment for new financing, and we are pleased to
be working with such leading lending institutions," Ms. Donahue said. "We have made
substantial progress in our restructuring of
the company, and the result has been that we
have achieved our business plan year-to-date
in 2005. Just as important, we have hit the significant milestones we set for our company this
year, including the
filing of our plan
of reorganization
with the court on
July 15, 2005. We
hope to emerge
from Chapter 11
before the end of
the year. We are
on the right track,
and this financing
is just one more indicator of that."
Doug Ehrenkranz, senior vice-president of
sales and marketing at New World Pasta, said
the company has been focused on its core retail
brands to strengthen its place in the market.
"We have grown market share on our
existing brands, and we continue to have significant success with Healthy Harvest pasta,
a whole wheat blend pasta that has helped
stimulate interest in the pasta category."
New World has had successes in the
marketplace. Its Ronzoni Healthy Harvest
spaghetti scored $23,460,490 in sales in the
52 weeks ended Oct. 30, making it the No. 7
ranked pasta brand in the United States and
eclipsing "healthy" offerings by Barilla and
Dakota Growers.
According to the Patriot News of Harrisburg, a bankruptcy judge approved the New
World Pasta reorganization plan in midNovember, and the company could emerge
from bankruptcy early this month. MBN
- L. Joshua Sosland

bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - December 6, 2005

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