Sunland trustee seeks court OK for third extension of cash collateral

By Kali Hays

New York, April 3 - Sunland, Inc.'s Chapter 7 Trustee Clarke C. Coll requested a third extension of the company's use of cash collateral, according to a Wednesday motion filed with the U.S. Bankruptcy Court for the District of New Mexico.

Coll asked for an extension through July 31 from May 1 as he and his counsel are currently negotiating with lenders on the terms of distribution of sale proceeds from the company's approved $26 million sale to Golden Boy Foods Ltd., according to the filing.

The cash collateral will be used for business and administrative expenses, payment of professionals and to address claims against the company.

Coll claimed the request is "out of an abundance of caution so that he will not be without the use of cash collateral in the event that lenders' claims are not paid in full prior to the expiration of the second period," according to the filing.

Sunland, a Portales, N.M., peanut butter producer, filed for bankruptcy on Oct. 9. The Chapter 7 case number is 13-13301.

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