A Fresno and Reedley-based fruit grower and packer is objecting to a motion filed by debtors to bankrupt Prima Wawona to approve the sale of the company’s assets. The management of Trinity Fruit Company argued that the motion is preventing it from receiving payment for perishable products that it provided.
Prima Wawona, the nation’s largest peach producer, filed Chapter 11 bankruptcy proceedings on October 13, with the intent to sell the company to an outside party. Prima Wawona’s lenders could take control of the company through a debt-to-equity conversion if it is not sold to a third-party.
Now, Trinity argues that it has the right to receive payment for its products under the Perishable Agricultural Commodities Act (PACA), which passed Congress in 1930 and protects businesses dealing in fresh and frozen fruits and vegetables by enforcing a code of fair business practices.
Source: sjvsun.com