Court OKs Contessa’s bankruptcy plan

U.S. Bankruptcy Court in Los Angeles has approved Contessa Premium Foods’ agreement with Wells Fargo Bank, permitting the continued funding of its operations while in Chapter 11, the San Pedro, Calif., company, announced on Thursday.

Last Thursday, Contessa, which produces frozen shrimp and ready-to-cook seafood meals, unveiled that it had filed for Chapter 11 bankruptcy protection.

“The agreement with Wells Fargo provides adequate liquidity for normal operations to continue without any disruptions to our customers, vendors and employees,” said Contessa CEO John Z. Blazevich. “I have been conversing with many of our customers over the last few days and have found them to be remarkably supportive. They trust Contessa will get through this difficult time and they plan to support us without interruption. This affirms our customers truly value our focus to provide them responsibly sourced, quality products at the greatest value.”

Contessa attributed the restructuring to its state-of-the-art processing plant in Commerce, Calif., which the company has been unable to profitably use the full capacity of.

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