Cadiz receives default notice from ING following Sun World's Chapter 11 filing

By Carlise Newman

Chicago, Feb. 18 - Cadiz Inc. said it received a notice of default and demand for payment from its primary lender, ING Capital LLC, following the Chapter 11 filing by its subsidiary Sun World International.

The Santa Monica, Calif. -based company said in a filing with the Securities and Exchange Commission that its agreement with ING to extend the maturity of its senior debt was conditioned on Sun World renewing its revolving credit agreement. That condition was not met upon Sun World's Feb. 13 voluntary filing for Chapter 11 protection.

Cadiz says it cannot provide assurances that a restructuring deal with ING can be achieved. The company also must raise additional funding to meet its ongoing working capital requirements.

Cadiz is in negotiations with several parties to obtain funding. If unable to accumulate the funding and complete the restructuring of ING debt out-of-court, Cadiz may be required to consider in-court alternatives.

Cadiz is a water and agricultural resources firm. Its subsidiary Sun World International is a marketer and packer of fresh produce.

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