Sunland granted approval to use cash collateral from Feb. 1-April 30

By Caroline Salls

Pittsburgh, Jan. 30 - Sunland, Inc.'s Chapter 7 trustee received court approval to use cash collateral from Feb. 1 until April 30, according to a Friday filing with the U.S. Bankruptcy Court for the District of New Mexico.

Chapter 7 trustee Clarke C. Coll said the cash collateral is needed to meet the company's ongoing cash requirements.

If the cash use was not granted, Coll said estate assets and records and creditors' collateral would all be at risk; rodents, insects, and other pests would damage Sunland's remaining valuable peanut and peanut butter inventory; the plant's equipment and machinery would be vulnerable to theft and destruction; the lack of utility service would leave the equipment and machinery vulnerable to the elements; and the estate's assets would be at risk because of a lapse of insurance.

"Without access to the cash collateral, trustee would be forced to administer the estate in a haphazard fashion without regard to its orderly liquidation, to the detriment of the estate and its creditors," the cash use motion said.

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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