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Phoenix-based NutraCea files for Chapter 11

by Andrew Johnson - Nov. 10, 2009 02:56 PM
The Arizona Republic

NutraCea, a Phoenix-based maker of dietary supplements, filed for Chapter 11 bankruptcy protection on Tuesday.

The small public company reported $83.7 million in assets and debt worth $18.9 million in its petition filed in U.S. Bankruptcy Court in Phoenix.

Last month the company announced that Wells Fargo was accelerating the principal balance due on a line of credit on which it defaulted.


The firm also had to restate its financial results for fiscal years 2006 and 2007 and the first three quarters of 2008 last month due to accounting errors discovered by independent investigators hired by the firm's audit committee.

NutraCea moved its corporate headquarters
from California to Phoenix in 2007. It started production at a new Phoenix facility early this year but closed it down due to a lack of customer demand.

It also faces lawsuits over a facility in Louisiana due to late payments on lease and supply agreements, according to the company.

The firm's shares closed down 7.4 percent at 5 cents on Thursday.