SAN PEDRO, Calif., Jan. 27, 2011 /PRNewswire/ -- Contessa Premium Foods, Inc., an international frozen-food manufacturing leader, announced today, that in order to fully implement its turnaround plan, which will return the company to historical levels of profitability, it has commenced reorganization proceedings in Los Angeles.
Contessa's major creditors are supportive of the company's reorganization and are working closely with the company to maximize value for all stakeholders.
Contessa intends to use the reorganization proceedings primarily to reduce its obligations associated with the company's world-class manufacturing facility in Commerce, CA. The Commerce plant was built in anticipation of future market demand for products produced using environmentally responsible methods. Over the past few years, the global financial downturn combined with intense competition from well-financed 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.
"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, chief executive officer of Contessa Premium Foods, Inc. "After 25 years of consistent growth and profitability, we thank our loyal customers for their reception to our innovative products over the years, and our employees who executed those visions seamlessly. Our restructuring process will strengthen our financial health and long-term growth and have Contessa resume the leadership and innovation we have been recognized for globally."
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.
SOURCE Contessa Premium Foods, Inc.