SureBeam has been unable to reach a restructuring agreement with its senior secured lender, who has indicated its intention to accelerate the maturity and to demand payment of SureBeam's debt. In addition, SureBeam has been unable to raise additional funds it needs to continue its operations.
The board of SureBeam has determined that it is in the best interest of all of the company's constituencies that protection of the Bankruptcy Court is obtained under Chapter 7 of the United States Bankruptcy Code. Under Chapter 7, a trustee will be appointed by the Court to liquidate the company and its principal operating subsidiary, SB Operating Co., LLC.
SureBeam will cease to operate its business by the end of day, Friday, Jan. 16.
SureBeam was a leading provider of electron beam food safety systems and services for the food industry. The SureBeam patented system is based on electron beam and x-ray technology that destroys harmful food-borne bacteria much like thermal pasteurization does to milk. This technology can also eliminate the need for toxic chemical fumigants used in pest control that may be harmful to the earth's ozone layer.
Read CEO Terrance J. Bruggeman's comments in the upcoming Jan. 16 edition of ID Report