Sunland seeks interim court approval for use of cash collateral

By Jim Witters

Wilmington, Del., Oct. 21 - The Chapter 7 trustee for Sunland, Inc. is seeking interim approval for the use of lenders' cash collateral, according to an Oct. 18 filing with the U.S. Bankruptcy Court for the District of New Mexico.

"Use of cash collateral pending a final hearing on the first cash collateral motion is necessary to avoid immediate and irreparable harm to the estate," trustee Clarke C. Coll stated in the filing.

CoBank, ACB, Production Credit Association of Southern New Mexico and Costco Wholesale Corp hold liens on the cash collateral.

The trustee estimated that about $4 million of cash collateral exists.

Sunland is seeking an expedited hearing on interim approval of cash collateral use, but no hearing has been scheduled.

Sunland, a Portales, N.M., peanut butter producer, filed for bankruptcy on Oct. 9. The Chapter 7 case number is 13-13301.

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