TRI VALLEY GROWERS, INC.

Case Highlights

• Provided crisis management and financial and operations analysis
• Crafted plans to continue business operations while working with stakeholders toward sale of company assets

Case Narrative

Tri Valley Growers, Inc. (TVG), a member-owned marketing cooperative with over 400 members, produced more than half of the canned peaches and pears, and a significant portion of canned tomato products, sold in the U.S.

TVG retained DSI as Crisis Manager and Reorganization Consultant.   A member of DSI was also appointed as Responsible Person to assist with daily operations and to serve as intermediary between the company’s growers, lenders and vendors.  DSI analyzed TVG’s business plan, operations and future prospects and, after determining that the best course of action was to continue to operate the company while working to sell its assets, participated in sale negotiations with potential buyers and other stakeholders. DSI negotiated successful resolution of disputes with the local union, averting a threatened strike, and the area’s water quality control authority, whose $42 million priority claim was eliminated through the sale of a TVG plant.  All told, DSI’s efforts resulted in payment or elimination of $515 million in secured debt, a nearly $100 million reduction in claims, full payment of administrative expenses and a significant distribution to unsecured creditors.