Shrimp-farming firm NaturalShrimp is facing the potential liquidation of its assets after a court-appointed receiver determined it to be the best way to secure assets of lenders.
NaturalShrimp revealed in a Form 8-K filed with the U.S. Securities and Exchange Commission on 13 September 2024 that Streeterville Capital LLC and Bucktown Capital LLC both filed motions to appoint a receiver to the company alleging NaturalShrimp defaulted on its loan agreements. The motion, filed 3 September 2024, was quickly granted on 9 September by a district court in the U.S. state of Utah.
Turnaround and Restructuring LLC was put in charge of reviewing NaturalShrimp Inc., NaturalShrimp USA Corporation, NaturalShrimp Global Inc., and Natural Aquatic Systems, Inc. to determine the best path forward for creditors.
Soon after the court and SEC filings, NaturalShrimp put out a press release stating it “entered into discussions with Streeterville Capital” to resolve current issues and “to continue growing and expanding the production of the company’s sushi grade shrimp.”
“Rather than shutting down its operations in response to the litigation or seeking protection under U.S. Bankruptcy Laws, [NaturalShrimp CEO] Gerald Easterling stated that a better alternative is to continue seeking an amenable solution with Streeterville,” NaturalShrimp said.
The company has been quiet about the ongoing process since the release, and the latest motion filed by the receiver on 13 February reveals it found the best option for creditors is to sell off NaturalShrimp’s assets.
“Receiver has concluded that the only viable path forward to preserve the assets and satisfy as much of the Receivership Entities’ outstanding debt obligations is for receiver to sell the assets to the highest bidder,” the court filing states. “With this motion, receiver proposes to sell substantially all of the Receivership Entities’ assets.”
According to the court filing, during its investigations, Turnaround and Restructuring found the company’s sales are ...
