Thursday, January 15, 2009

Death Watch Update: Fried Green Tomatoes Fried

Death Watch candidate, greenhouse tomato producer and employer of illegal immigrants, Eurofresh Farms, does not disappoint. The Company earlier filed an 8-K saying it will not pay interest on its 11.5% Senior Notes due 2013, but before bondholders scream bloody murder, "the non-payment does not constitute an event of default under the indenture" and that this is just a testing of whether this whole grace period things works....kinda like exactly a year ago when it did the same thing. Furthermore, Eurofresh "has initiated a strategic alternatives review process to take advantage of current market opportunities to enhance the capital structure." Well, they obviously know something Lazard doesn't cause last time we checked "market opportunities" thought that Nortel wasn't a very appropriate DIP candidate. It is likely that secured lender Silverpoint will just say enough, and take over the few hundred or so tomatoes that its secured credit facility is financing.

Apparently Alvarez and Marsal has been hired to succeed where Lazard has failed.
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Anonymous said...

What facts do you have to support your claim that Eurofresh Farms hires illegal immigrants? I have done extensive research and have found no hard evidence that indicates this.

Stating something so libelous really discredits this blog.

Tyler Durden said...

How about this statement in Legal Matters section of the company's 10-K

In July 2006 the U.S. Department of Justice (DOJ) initiated an investigation into the Company’s hiring practices with respect to immigration matters and served the Company and certain employees in the Human Resources department with a Grand Jury subpoena to obtain relevant documents. Management immediately hired legal counsel to initiate an investigation to uncover any potential wrongdoing. In December 2006, our Board of Directors appointed a special committee (the “Special Committee”) to investigate the DOJ’s allegations and the Special Committee hired its own legal counsel to represent it for the duration of the internal investigation. In February 2007, the Special Committee made recommendations to the Board of Directors based on the conclusions of its investigation, and the Special Committee also reported its findings to the DOJ in March of 2007. As a result of this investigation, the Company has terminated certain employees. The Company is in active discussions with the DOJ regarding the resolution of the investigation. Further, while it is probable that the Company will be subject to a financial penalty, at this time the amount is not estimable. However, the resolution could have a material adverse effect on the Company’s business.

If i am not mistaken then COO was fired for this infraction, and had to pay a $200,000 dollar penalty (this is in the public record, happy to send you the link). The company is still in discussions with the US DOJ about what a potential penalty/fine (if any) for the company itself should be.

I don't think libel is something supported by facts.

Anonymous said...

If you are wanting to post a picture with this article, try taking a picture of Eurofresh tomatoes. Clearly that is not Eurofresh just simply from the blue foam in the bottom. They use a lighter blue. Also, Eurofresh tomatoes collapse in the center like normal tomatoes, the picture shows tomatoes that sat on the vine far too long. :)

Anonymous said...

The tomatoes on the picture are not Eurofresh Farms tomatoes. Eurofresh does not sell loose tomatoes like that.