Chiquita Says It Has Deal to Cut Debt
Associated Press
Chiquita Brands International Inc., facing reorganization, said it has reached a deal with bondholders to reduce the company’s debt by about $700 million.
As a result of the deal, Chiquita plans to file a prepackaged reorganization plan in U.S. Bankruptcy Court.
Chiquita’s management said it expects the deal will shorten the company’s time operating under Chapter 11 protection.
In addition to reducing debt and accrued interest from about $950 million to $250 million, the agreement will cut Chiquita’s future annual debt interest by about $60 million, the company said. All of the $950-million debt is owed to the bondholders.
Shares of Cincinnati-based Chiquita fell 9 cents to 60 cents on the NYSE.
