In a significant development within the agricultural sector, Trinitas Farming LLC, a Central Valley almond grower, has sought Chapter 11 bankruptcy protection. The entity, an investment vehicle established by the Redwood City-based Trinitas Partners in 2015, is grappling with approximately $188 million in debt. Trinitas Farming's portfolio spans 17 almond ranches across Fresno, Tulare, San Joaquin, Contra Costa, and Solano counties, covering 7,856 acres. The restructuring strategy involves the divestiture of these almond ranches.
Among the debts disclosed are a $130 million term loan and an additional $31 million in delayed draw loans from Rabo Ag, alongside obligations to the 20 largest unsecured creditors amounting to over $26.6 million. The Almond Co. in Madera emerges as the largest unsecured creditor with a $9.2 million claim. In a bid to sustain operations through its reorganization, Trinitas Farming is seeking court approval for a $30 million loan.
According to court filings, the bankruptcy filing comes at a critical juncture in the almond-growing season, with Trinitas facing immediate financial requirements to maintain its orchards. The collapse of Trinitas follows the downfall of Prima Wawona, another entity managed by a private equity fund, hinting at a broader trend affecting land values in agricultural real estate. Industry experts predict a challenging period ahead, with potential impacts on land prices and market dynamics influenced by various factors including commodity prices and water availability.
Source: thebusinessjournal.com