SOURCE: NutraCea

January 20, 2012 08:00 ET

NutraCea Makes Final Payments Under Plan of Reorganization

SCOTTSDALE, AZ--(Marketwire - Jan 20, 2012) - NutraCea (OTCQB: NTRZ) (PINKSHEETS: NTRZ), a global leader in the production and marketing of value added products derived from rice bran, today announced final payment of all amounts due to creditors under the terms of its Plan of Reorganization.

The Company confirmed today that it has met all of its obligations under the terms of the Amended Plan of Reorganization approved by the US Bankruptcy Court.

W. John Short, Chief Executive Officer of NutraCea, stated, "We are pleased to have made the final payments due to all creditors under the Amended Plan of Reorganization. We are proud to have paid in full all of the lenders, suppliers and vendors who supported NutraCea during the entire reorganization process that began with our Chapter 11 filing in November 2009 and culminated in our final payments to creditors at the beginning of this week. No creditor that participated in the court supervised restructuring process lost money doing business with NutraCea.

"NutraCea used the Chapter 11 process exactly as it was intended. Under the supervision of the bankruptcy court, we restructured our business, repaid all creditors in full and protected the interests of the shareholders who invested in NutraCea prior to the bankruptcy filing. I want to offer special thanks to Cary Forrester, bankruptcy counsel who represented NutraCea throughout the proceedings, for his guidance and wise counsel in guiding us through this complex process."

The Company's bankruptcy counsel, S. Cary Forrester, of Forrester & Worth, in Phoenix, Arizona, commented: "This is an extraordinary outcome. In the vast majority of Chapter 11 filings, the pre-petition owners lose most or all of their ownership interests and unsecured creditors receive pennies on the dollar. In fact, according to one study of bankruptcy outcomes, less than 10% of Chapter 11 debtors confirm and complete a plan of reorganization. In this case, NutraCea not only exited Chapter 11 intact and paid all of its debts in full, but it did so in a way that allowed its shareholders to retain 100% of their ownership interests in the Company."

Forward-Looking Statements
This release may contain forward-looking statements. These statements are made based upon current expectations that are subject to known and unknown risks and uncertainties. The Company does not undertake to update forward-looking statements in this news release to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information. Assumptions and other information that could cause results to differ from those set forth in the forward-looking information can be found in NutraCea's filings with the Securities and Exchange Commission, including NutraCea's most recent periodic reports.

About NutraCea
NutraCea is a world leader in production and marketing of value added products derived from rice bran. NutraCea holds many patents for processed rice bran (SRB) production technology and proprietary products derived from SRB. NutraCea's proprietary technology enables the creation of food and nutrition products to be unlocked from rice bran, normally an underutilized co-product of rice milling. NutraCea also produces rice based consumer health supplements which can be found at http://www.nutraceaonline.com. More information can be found in the Company's filings with the SEC and by visiting our website at http://www.NutraCea.com.

Contact Information

  • Investor Contact:
    Alliance Advisors, LLC
    Alan Sheinwald
    President & Founder
    (914) 669-0222
    Email Contact