The procedure gives the company time to organise its affairs and obtain a seasonal financing package to see it through the 2003-04 season. The news comes despite a strong performance in 2002.

'The filing was necessary to protect our employees, customers, growers and licensees,' said Sun World ceo Tim Shaheen. 'SThe demands of seasonal agriculture and the capital structure of the company required us to find new financing through bankruptcy protection.' The company believes that the filing and subsequent cash injection will allow it to take advantage of increasing demand for its branded fresh produce lines. It is best known as the Superior Seedless grape licensor but has also developed other branded varieties such as Midnight Beauty grape, Black Diamond plum and Honeycot apricots. These are grown under licences it issues to producers in Europe, South America, Australia and South Africa.

Sun World's management will remain in place and the bankruptcy development is unlikely to affect employees and trading relationships. In fact some companies emerge stronger following chapter 11 proceedings. For example, Chiquita Brands filed under chapter 11 last year and emerged with a solid balance sheet and a new management team.

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