California-based Custom Food Products, a developer and manufacturer of value-added protein products for the food service and packaged foods industries, has successfully completed its reorganisation under Chapter 11 of the Bankruptcy Code through an equity financing sponsored by William E. Simon & Sons Private Equity Partners.
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Custom Food Products had been operating under the protection of Chapter 11 since February of 2001 when its parent company defaulted on a debt obligation.
Pursuant to the financing, William E. Simon & Sons and members of Custom’s executive management have acquired a majority interest in the reorganised company in return for equity capital that was used to settle Custom’s pre-bankruptcy liabilities.
“We are very pleased to be exiting bankruptcy in a timely fashion,” said Eric W. Ek, president and CEO of Custom. “With strong equity backing from Simon and a very substantial reduction in debt, we are positioned to serve our customers better than ever.”
Erik M. W. Caspersen, a principal with William E. Simon & Sons, added, “We look forward to a long and mutually prosperous relationship with Custom Food Products. The company has a strong management team in place and a long history of successful customer relationships, and we are pleased that we were able to help solve what was fundamentally a capital structure problem.”
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By GlobalData
