Contessa Premium Foods Receives Approval of its Agreement with Lender for Funding Operations
February 2, 2011 Contessa Premium Foods, Inc. received U.S. Bankruptcy Court approval of its agreement with Wells Fargo Bank, N.A. permitting the continued funding of Contessa's operations while in Chapter 11. Chief Bankruptcy Judge Peter Carroll approved the agreement, along with all of Contessa's other "first day motions," at a hearing in Los Angeles on Monday, January 31, 2011. "The agreement with Wells Fargo provides adequate liquidity for normal operations to continue without any disruptions to our customers, vendors and employees," said John Z. Blazevich, Contessa's chief executive officer, reports www.megafishnet.com with reference to Contessa Premium Foods.
Mr. Blazevich also noted, "I have been conversing with many of our customers over the last few days and have found them to be remarkably supportive. They trust Contessa will get through this difficult time and they plan to support us without interruption. This affirms our customers truly value our focus to provide them responsibly-sourced, quality products at the greatest value. "
Contessa's reorganization is primarily focused on reducing its obligations associated with the company's world-class environmentally responsible manufacturing facility it built in Commerce, CA in 2007. The global financial downturn combined with intense competition from large multi-national corporations has caused Contessa to be unable to profitability utilize the full capacity of the Commerce plant.
The company's shrimp, seafood and private label business continues to grow and will provide the foundation for Contessa's return to profitability.
About Contessa Premium Foods, Inc
An environmentally and nutritionally responsible frozen food manufacturer, CONTESSA PREMIUM FOODS, INC. imports, processes and distributes its products throughout North America, Europe, and Asia, and markets to retail, club, food-service, and private-label channels. Contessa's portfolio of products includes but is not limited to specialty seafood, convenience meals, gourmet stir-fry vegetables and exotic fruit. www.contessa.com