Fresh fruit distributor Chiquita is poised to hand over a large chunk of equity to its creditors as it slides further into the financial abyss created by the banana war.

The key player has shown devastating losses of more than US$1.5bn over the last eight years as the trade dispute with the EU rocked business.

In a bid to bring the firm back to its feet, Chiquita bosses hope to strike a deal with creditors on the restructuring of $841m worth of debts.

Chief executive Steven Warshaw: 'What we were was a good company with a bad balance sheet and we hope to become, through this process, a good company with a good balance sheet.' If the plan was to go through, all existing shareholders would find their stakes diluted.

Chiquita has seen appalling performances in the City and Wall Street – prices have fallen about 50 per cent this year.

On Wednesday, October 24, shares slumped 9.65 per cent to 75 cents.

Topics