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SK Foods, LP (the Company) today announced that the Company filed voluntary petitions in U.S. Bankruptcy Court for the District of California for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

The Company received notice of termination yesterday from the financial lending group, which includes Bank of Montreal, Wells Fargo Banking, and Bank of the West. This action forced the Company to file Chapter 11 bankruptcy. The Company is currently marketed and actively for sale with a target sale date of late June, 2009.

SK Foods, LP is a privately held company with operations in Kings, Colusa, Monterey, Solano and Yolo counties with more than 400 full time employees and 2500 seasonally employed workers. The Company has continuously cooperated with the lending group and saddened by their decision to end our relationship and the potential loss of numerous jobs and the overall impact to our local communities. The Company is doing everything possible to protect the interests of employees, growers, customers and the communities in which it operates.

"This was a difficult but necessary decision," said SK Foods, Scott Salyer, CEO. "We have been focused on realigning our operations and improving our execution, and this filing will relieve the immediate pressure from our creditors and provide us time for an orderly exploration of our strategic alternatives, including a sale. This Chapter 11 filing is the next logical step in an ongoing process to address our capital structure."

"SK Foods, LP enters this process with strong underlying fundamentals that continue to exceed expectations in spite of the general economic environment," Mr. Salyer added.

SK Foods, LP expects that Chapter 11 protection will enable the company to continue managing its operations in the ordinary course of business.

About SK Foods

SK Foods is a California-based international processor of tomato and vegetable products, organic and conventional, for re-manufacturers and foodservice marketers. With locations in northern and central California, the company capabilities include packaging ready-to-use products in cans and glass, to industrial tomato ingredients packed in drums and bins.

The company is part of the SK Foods Group which also owns Salyer American Fresh Foods, SK Frozen Foods and Cedenco Foods Ltd. of New Zealand. Cedenco Foods processes and distributes tomato products and other food ingredients to customers throughout the world from locations in New Zealand and Australia.

SOURCE: SK Foods