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Rice bran refiner NutraCea says it filed for bankruptcy protection and took out loan

From The Associated Press, November 11, 2009 - 08:08 AM

Rice bran refiner NutraCea says it filed for bankruptcy protection and took out loan

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NEW YORK (AP) - NutraCea, which refines rice bran into food products, says it filed for Chapter 11 bankruptcy protection to it can remain in business while selling off some of its operations and slashing costs.

In a statement released Tuesday night, the Phoenix-based company said it will focus on core business of stabilized rice bran, rice bran oil, baby cereal, and nutritional supplements. NutraCea said none of its subsidiaries are included in the bankruptcy filing.

The company also applied for and received about $6.8 million in financing from Wells Fargo Bank so it can resume normal operations.

NutraCea owes Wells Fargo about $3.6 million under an older credit facility.

Earlier this year, NutraCea said it would cut expenses and capacity. It 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.