Due to an "unforeseen and unfavorable decision" by an American tribunal, Choice Genetics USA LLC announced Feb. 13 that — with the cooperation and assistance of its senior secured lenders — it has embarked on a restructuring of its financial and business affairs with the filing of a Chapter 11 Reorganization case in the Southern District of Iowa. Under such reorganization proceedings, Choice Genetics USA will continue in operation and will incur and pay debt with the intent to file a plan of reorganization.
During the reorganization, the company will "endeavor to protect its employees, customers and vendors in this proceeding. Choice Genetics USA values and appreciates the past loyalty and support of its employees, customers and vendors and hopes that the relationships will continue through this difficult time," Choice Genetics chief executive officer Mark Weaver said.
Newsham Choice Genetics and Pen Ar Lan — both part of the second largest multi-species genetic company in the world, Groupe Grimaud — became Choice Genetics in June 2013. Choice Genetics has subsidiaries in the U.S., Canada, Brazil, France, Germany, Poland and Vietnam.