Dean Foods Co. initiates voluntary Chapter 11 reorganization
The company secured commitments for $850 million in debtor-in-possession funding; is in advanced discussions with Dairy Farmers of America regarding a potential sales.
On Nov. 12, Dean Foods Co. said it and substantially all of its subsidiaries initiated voluntary Chapter 11 reorganization proceedings in the Southern District of Texas. Dallas-based Dean Foods said it intends to use this process to protect and support its ongoing business operations and address debt and unfunded pension obligations while it works toward an orderly and efficient sale of the company.
Dean Foods also announced that it is engaged in advanced discussions with Kansas City, Kan.-based Dairy Farmers of America Inc. (DFA) regarding a potential sale of substantially all assets of the company. If the parties ultimately reach agreement on the terms of a sale, the transaction would be subject to regulatory approval and would be subject to higher or otherwise better offers in the bankruptcy.