- The Washington Times - Tuesday, April 21, 2009

FORTUNA, CALIF. (AP) - The troubled Humboldt Creamery is looking for a buyer after officials filed to reorganize under Chapter 11 bankruptcy protection.

The cooperative that was the showpiece of a struggling rural economy fell into trouble in February when longtime Chief Executive Rich Ghilarducci resigned and warned of serious financial problems. Company officials immediately halted the co-op’s first sale of securities and 50 family dairies agreed to defer $5.7 million in money owed to them.

Officials said then that receivables had been overstated. Ghilarducci is under investigation.

Company officials say secured lenders have provided $3 million to pay expenses that will arise after the filing Tuesday in U.S. Bankruptcy Court in Santa Rosa.

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