Evelyn and Batista Madonia Sr., the owners of Plant City’s Red Rose Inn and Suites, filed for Chapter 11 protection March 6, in U.S. Bankruptcy Court, in Tampa.
The Madonias filed for protection for themselves and four corporations: Circle M Ranch Inc.; East Coast Brokers and Packers Inc.; Oakwood Place Inc. (Red Rose Inn and Suites); and Ruskin Vegetable Corp.
The couple cites between $50 and $100 million in liabilities and the same in estimated assets, as well as more than 200 creditors, in the filing.
Chapter 11 protection will allow the Madonias to reorganize without having to liquidate all assets. Their attorney, Scott Stichter, said the family is committed to satisfying as many debts as possible.
“We’re looking at all options and want to maximize all repayments to creditors,” he said.
Stichter said the Madonias will continue operating their agricultural businesses while the restructuring takes place, which could last for several years.
“You really just have to let the process go on,” he said. “Some cases can take months; some can take five years. It doesn’t require on day three to know where we’re going.”
The filing comes about a month after the Madonias retained Champaign, Ill.-based Murray Wise Capital LLC, a land and agribusiness management firm, to explore options for East Coast Brokers and Packers Inc., their tomato growing/packing operation.
Murray Wise, which will serve as a financial adviser, will examine a variety of strategies, including the possible sale of certain farmland and other assets and a recapitalization/restructuring of its existing operations, the firm stated in a release Feb. 11.
After two years of freezes on its Florida farms in 2010 and 2011, a hurricane on its Virginia farms in 2011 and an influx of cheap tomato imports from Mexico in recent years, East Coast Brokers and Packers opted not to grow and pack tomatoes in late 2012 and into 2013.
The recent announcement of a new agreement between the U.S. Department of Commerce and Mexico growers, raising the floor price for tomatoes, will make its operations and assets more attractive to operators and investors, said Ken Nofziger, president of Murray Wise Capital.
Assets include more than 10,000 acres in Florida and Virginia.
“We’re entertaining offers on any and all of the assets, which include operating farms, six packing houses and labor housing for more than 1,300 employees,” Nofziger said. “We are also looking for partners for the Madonia family to continue operating the business.
“Taken as a whole, this is a vertically integrated operation that, with the new pricing agreement in place, presents an interesting opportunity to the right investor,” he said.
The Florida land includes 7,100 acres, of which about 4,230 are farmable in Hillsborough, Manatee, Martin and Polk counties. The Florida operating farms range from about 439 acres to 2,285 acres. Other Florida assets include a 312,000-square-foot packing facility, greenhouses and several labor camps near Mulberry.
The Red Rose closed abruptly in May 2012, following the death of the Madonia’s daughter, Laurie, who had been battling cancer.
A meeting of creditors will take place at 9:30 a.m. April 8, at 501 East Polk St., Room 100-B, Tampa. The deadline to file a proof of claim is May 20.
Associate Editor Amber Jurgensen contributed to this report.
Contact Michael Eng at meng@plantcityobserver.com.