Milling & Baking News - November 17, 2009 - 20

GEAPS

Grain Elevator and Processing Society

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EXCHANGE
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Business u

Dawn to close one facility,
expand operations at four
JACKSON, MISS. - Dawn Food Products, Inc. plans to
close its manufacturing facility in Tustin, Calif., and expand
operations at four facilities in Atlanta; Manteno, Ill.; Mexico, Mo.; and Modesto, Calif. The company said the changes
will occur during the next few months.
The decision was based on research that showed the closing and production shift would improve efficiencies, align
resources, reduce shipping costs and eliminate redundant
costs, according to the company.
The closing of the Tustin facility will result in the elimination of approximately 90 positions. The facility produces
frozen baked goods, including cake layers, raised donuts,
sweet goods and frozen batters.
"Dawn is providing the key tools and knowledge that
people need to manage this difficult transition," said Partha
Kundu, senior vice-president of operations for U.S. Bakery
Products. "We greatly appreciate the ongoing dedication
from Dawn people to continue providing high quality
products and excellent customer service." MBN

NutraCea files for Chapter 11 bankruptcy
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PHOENIX - NutraCea, which refines rice bran into food
products, on Nov. 10 filed a voluntary petition for protection under Chapter 11 of the U.S. Bankruptcy Code in the
U.S. Bankruptcy Court for the District of Arizona. None
of the company's subsidiaries, including its Brazilian rice
bran oil operation, Irgovel, were included in the bankruptcy filing.
In filing for bankruptcy, NutraCea said it would use the
protection provided by the courts to restructure its operations, reduce overhead and sell non-core assets. The company earlier announced it would focus on its core businesses of stabilized rice bran, rice bran oil, nutraceuticals
and baby cereal.
In the bankruptcy filing, NutraCea listed assets of
$83,700,000 and total debts of $18,900,000. The company
also said it has 192,967,680 shares of common stock and between 200 and 999 creditors.
"The protection provided by the Chapter 11 process will
allow NutraCea to gain immediate liquidity through the
$6,750,000 Debtor-in-Possession (DIP) financing facility
provided by Wells Fargo Bank, N.A. and to resume normal
day-to-day operations, while giving us the opportunity to
restructure, strengthen our business performance and create long-term value for our stakeholders," said W. John
Short, chief executive officer. "We will work hard to emerge
from this process as quickly as possible with a streamlined
cost structure that should allow us to operate as a healthier,
more competitive and profitable company. We deeply appreciate the dedication and efforts of our employees, who
have worked exceedingly hard during this challenging
period. We look forward to the continued support of our
customers, vendors and business partners as we reposition
NutraCea for future growth and profitability."
Earlier this year, NutraCea said it would cut expenses
and capacity, and the company sold a nutritional supplement distribution business, and temporarily closed manufacturing facilities in Louisiana. It also sold its interest in a
company that was planning to build and run a wheat mill
in Indonesia. MBN

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Milling & Baking News - November 17, 2009

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