CINCINNATI (AP) — Chiquita Brands International Inc., under investigation for payments its Colombian banana subsidiary made to groups designated by the United States as terrorist organizations, said Friday it is selling the unit.
Chiquita said it has agreed to sell its banana-producing and port operations in Colombia to Invesmar Ltd., the holding company of C.I. Banacol S.A., for $28.5 million in cash. Invesmar also would assume $15 million in debt and $8 million in pension liabilities.
Chiquita is a leading international marketer, producer and distributor of bananas and other fresh produce, and fresh-cut fruit. Banacol is a Colombia-based producer and exporter of bananas and other fruit products.
On May 10, Chiquita announced it had told the U.S. Justice Department in April 2003 of payments by the subsidiary, Banadex, to groups in Colombia designated by the United States as terrorists and had sought the department's guidance.
Chiquita said Banadex made the payments under pressure to ensure the safety of employees. It declined to reveal the amount or recipient of the payments or say how long they continued.
"I don't have any update on the DOJ investigation, beyond what was disclosed on May 10," Chiquita spokesman Mike Mitchell said Friday.