Norpac Foods loan agent CoBank agrees to extend forbearance to Jan. 3

By Caroline Salls

Pittsburgh, Dec. 12 – Norpac Foods, Inc. administrative agent and lender CoBank, ACB has agreed to extend the expiration date of its forbearance agreement with the company to Jan. 3 from Dec. 10, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Oregon.

As previously reported, CoBank said Norpac’s debtor-in-possession financing matured on Oct. 31.

In addition, the lender said Norpac has not sold substantially all of its assets or secured confirmation of a Chapter 11 plan.

The company is in default under the DIP financing order, the initial forbearance motion said.

As a result of Norpac’s failure to sell all or substantially all of its assets by Oct. 31 and other events of default, CoBank said it is entitled to relief from the automatic stay to enforce its rights, and it intends to seek relief from the stay while it evaluates its options regarding the default.

However, CoBank said it believes that it would be appropriate to extend the forbearance period to allow Norpac to continue its sale efforts and to provide for an orderly process if other sales are not viable.

Salem, Ore.-based Norpac Foods is a grower-owned cooperative focused on processing frozen vegetables and fruit. The company filed bankruptcy on Aug. 22 under Chapter 11 case number 19-62584.

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