US-based custom foodservice manufacturer CTI Foods has completed its financial restructuring and successfully emerged from Chapter 11.
The company, which has reduced more than $400m of debt, moves forward with about $110m of committed exit financing from a new ABL facility.
In March this year, the foodservice manufacturer filed for reorganisation under Chapter 11 of the United States Bankruptcy Code in the District of Delaware in a move to implement its restructuring plan.
CTI Foods president and CEO Mike Buccheri said: “Through this process and with the support of our new sponsors, we have improved our capital structure and significantly reduced our debt.
“CTI Foods is now well positioned to build on our core business through increased investments in innovation, product development, and food safety.
“As always, we will continue to focus on CTI’s core mission of delivering exceptional custom foods and culinary solutions to drive our customers’ growth goals.”
In addition, a majority interest in CTI has been purchased by an investor group led by Black Diamond Capital Management, Barings, and the asset management and investment advisory business of Guggenheim Partners.
The investor group will support the foodservice manufacturer to further strengthen its business.
British investment bank and financial services company Barclays served as the sole arranger and sole bookrunner of the company’s exit ABL facility.
Weil, Gotshal & Manges is acting as legal advisor, Centerview Partners as financial advisor and AlixPartners as restructuring advisor to CTI.
CTI Foods offers various custom food solutions such as raw and pre-cooked protein, dry sausage, soups and sauces, and dehydrated beans to the foodservice and restaurant industries.
It has seven food processing facilities and has over 1,700 employees at its California, Idaho, Iowa, Kentucky, Pennsylvania, and Texas locations.