Trinitas Farming LLC, after filing for Chapter 11 bankruptcy protection on Feb. 19 in California, will sell its 17 Central Valley almond ranches as part of its reorganization plan.
Included among the Trinitas debtor corporations filing for bankruptcy protection are Dinuba Ranch LLC, Porterville LLC, Tule River Ranch LLC, Adobe Ranch LLC, and Jeffrey Ranch LLC.
Totaled, the company’s 17 almond ranches cover 7,856 acres in Fresno, Tulare, San Joaquin, Contra Costa, and Solano counties.
According to The Business Journal, Trinitas Farming has asked a bankruptcy judge to approve a $30 million loan to maintain its operations through the reorganization and sale of its portfolio.
“The Debtors enter these Chapter 11 Cases with almost no cash, during a critical period in the almond-growing season,” according to court documents, The Business Journal reports.
Trinitas requires $1 million in the first week of bankruptcy and $6.5 million for the first five weeks to keep running.
“The cost of irrigation, fertilizers, chemicals, and pollination alone — without which the Debtors will not be able to support their almond orchards — exceeds $520,000 during the first week and $2.2 million in the first five weeks,” according to court documents.
Trinitas Partners, a Redwood City-based private equity firm, had organized Trinitas Farms in 2015 to acquire and operate almond ranches in the Central Valley.
Trinitas Farms now has debts amounting to around $188 million, according to The Business Journal. Included are a $130 million term loan extended by Rabo Ag in November 2022, $31 million in “delayed draw” loans, and more than $26.6 million in debts owed to 20 of the largest unsecured creditors.
The company’s largest unsecured creditor is The Almond Co. hulling operation in Madera, with a $9.2 million claim. The Harvesting Group in Fresno is owed $4.8 million.