Consolidated Catfish Producers has announced an agreement has been reached to execute a long-term lease for the Eutaw, Ala. location of SouthFresh, as part of SouthFresh’s efforts to reorganize under Chapter 11 Bankruptcy.
According to a release by Consolidated Catfish this week, SouthFresh Aquaculture filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Court in the Bankruptcy Court for the Northern District of Alabama on January 28 to affect a strategic restructuring plan.
SouthFresh is a wholly- owned subsidiary of Alabama Farmers Cooperative, Inc. Alabama Farmers Cooperative, Inc. and its other affiliates were not included in the bankruptcy, the release said.
The lease, which is subject to bankruptcy court approval, will allow the processing plant to remain operational CCP said in the release.
CCP is one of the largest processors in the catfish industry and has had operations in Mississippi for over 50 years.
CCP plans to assume operations of the Eutaw plant with no disruption in the production of catfish and is interested in maintaining SouthFresh's current catfish customers.
Moving forward, SouthFresh will focus on energy and resources in the areas where they have proven strong growth and profitability. SouthFresh will continue to operate its Seafood Division under the name SouthFresh Foods, an importer, wholesale distributor and custom packer specializing in Gulf type species. Additionally, SouthFresh plans to continue operating its feed mill in Demopolis, Alabama, without any interruptions in service, the release said.
Merging CCP's Mississippi based farm supply and processing with the Alabama SouthFresh operations will only assure both CCP's customers and SouthFresh customers of an improved supply and service base, the company stated.
CCP will provide additional information and updates once SouthFresh has bankruptcy court approval.
