Tanimura Distributing Inc. files Chapter 7 in U.S. Bankruptcy Court
Tanimura Distributing Inc. files Chapter 7 in U.S. Bankruptcy Court
Tanimura Distributing Inc. in Irwindale, CA, has filed Chapter 7 bankruptcy in the U.S. Bankruptcy Court, Central District of California, citing assets in the neighborhood of $4.8 million and liabilities of around $10.6 million, according to Chuck Curl, director of ratings for rating analysts at The Produce Reporter Co., publisher of The Blue Book.
The filing (case number 08-BK-22644-TD) took place Aug. 12.
Blue Book analysts had been trying to find out what was going on at TDI for more than a week. It had been determined that Pacific Tomato Growers filed a temporary restraining order (case number CV08-5100-GW) from the U.S. District Court, Central District of California, in Los Angeles, against TDI, claiming unpaid bills owed by TDI in excess of $200,000, said Mr. Curl, but he had no other confirmed information. Attempts by The Blue book's analysts to talk to anyone at TDI had been unsuccessful, he said Aug. 13.
Tom Olivieri, director of trade practices and commodity services for Western Growers Association in Irvine, CA, said Aug. 13 that Joseph Choate Jr., an attorney with the law firm Choate & Choate in San Marino, CA, is representing "probably between $1 million and $2 million" in claims from growers. He mentioned that "quite a few tomato people are involved" and that "there are some big dollars involved."
The Produce News contacted Mr. Choate, who said, "We have filed a complaint [on Monday, Aug. 11] in U.S. District Court, Central California District, on behalf of a number of creditors, and we will be adding some more." He did not name the creditors. "The most I can tell you at the moment is that TDI has a lot of creditors. At this stage of the game, I think everything else is complete speculation," he said.
"What we anticipate is that at some point, the court will establish a set of procedures to identify all creditors who have perfected PACA Trust claims, and the assets that are available to satisfy those claims," Mr. Choate said. "I have been told by clients" that when they call TDI, "all [they] get is an answering machine." Mr. Choate said that he has had no personal contact with TDI or any representative of TDI.
Mr. Choate added that his law firm has learned that TDI "has been factoring its receivables [with Agricap] since about February this year, which is usually not the sign of a healthy company."
Factoring, or the sale of receivables to a financial service company such as Agricap, is a method often used by corporations to accelerate cash flow. TDI recently relocated from an facility adjacent to the Los Angeles Wholesale Produce Market in downtown Los Angeles to an 80,000-square-foot facility in Irwindale.
Attempts by The Produce News to talk to someone at TDI by telephone over a period of more than a week were also unsuccessful. Even the receptionist's extension went to voice mail. Several voice mail messages left for TDI President Kirby Tanimura were not returned.
The filing (case number 08-BK-22644-TD) took place Aug. 12.
Blue Book analysts had been trying to find out what was going on at TDI for more than a week. It had been determined that Pacific Tomato Growers filed a temporary restraining order (case number CV08-5100-GW) from the U.S. District Court, Central District of California, in Los Angeles, against TDI, claiming unpaid bills owed by TDI in excess of $200,000, said Mr. Curl, but he had no other confirmed information. Attempts by The Blue book's analysts to talk to anyone at TDI had been unsuccessful, he said Aug. 13.
Tom Olivieri, director of trade practices and commodity services for Western Growers Association in Irvine, CA, said Aug. 13 that Joseph Choate Jr., an attorney with the law firm Choate & Choate in San Marino, CA, is representing "probably between $1 million and $2 million" in claims from growers. He mentioned that "quite a few tomato people are involved" and that "there are some big dollars involved."
The Produce News contacted Mr. Choate, who said, "We have filed a complaint [on Monday, Aug. 11] in U.S. District Court, Central California District, on behalf of a number of creditors, and we will be adding some more." He did not name the creditors. "The most I can tell you at the moment is that TDI has a lot of creditors. At this stage of the game, I think everything else is complete speculation," he said.
"What we anticipate is that at some point, the court will establish a set of procedures to identify all creditors who have perfected PACA Trust claims, and the assets that are available to satisfy those claims," Mr. Choate said. "I have been told by clients" that when they call TDI, "all [they] get is an answering machine." Mr. Choate said that he has had no personal contact with TDI or any representative of TDI.
Mr. Choate added that his law firm has learned that TDI "has been factoring its receivables [with Agricap] since about February this year, which is usually not the sign of a healthy company."
Factoring, or the sale of receivables to a financial service company such as Agricap, is a method often used by corporations to accelerate cash flow. TDI recently relocated from an facility adjacent to the Los Angeles Wholesale Produce Market in downtown Los Angeles to an 80,000-square-foot facility in Irwindale.
Attempts by The Produce News to talk to someone at TDI by telephone over a period of more than a week were also unsuccessful. Even the receptionist's extension went to voice mail. Several voice mail messages left for TDI President Kirby Tanimura were not returned.
