LAKE FOREST, Ill. (HedgeWorld.com)–A distressed-debt private equity fund manager, Black Diamond Capital Management LLC, announced that it has acquired substantially all of the assets of a Californian agricultural company, Sun World International Inc., for US$127.75 million.

This is the consummation of a deal sealed by an auction Jan. 13, 2005, and confirmed by the bankruptcy court the following day.

“We are excited about Sun World’s long-term value potential as a leading agricultural producer and are committed to enhancing its growth and profitability,” said Christopher Kipley, a Black Diamond partner, as quoted in a statement. “We intend to build upon Sun World’s core strengths and its excellent organization so that the company will be able to continue to serve the needs of its customers.”

Sun World International Inc., Bakersfield, Calif., a grower and marketer of fresh fruits, filed a Chapter 11 petition Jan. 30, 2003, (see ) as the result of a cash and credit crunch. The successor entity will be known as Sun World International LLC and is 100% owned by entities managed by Black Diamond.

Sun World owns approximately 17,000 acres of land in the San Joaquin and the Coachella valleys of California

Contact Bob Keane with questions or comments at: bkeane@investmentadvisor.com.