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Borden, Dean Foods move forward with Chapter 11 Bankruptcies
Posted on Jan 09, 2020 at 0:00 AM
Major dairy companies Borden and Dean Foods have announced Chapter 11 bankruptcy proceedings that will allow each to restructure debt.
On Jan. 5, Borden announced that it and certain affiliates have initiated voluntary reorganization proceedings in the District of Delaware under Chapter 11 of the Bankruptcy Code. The company intends to use the court process to pursue a financial restructuring designed to reduce its current debt load and maximize value while positioning itself for long-term success. Borden plans to continue operating in the ordinary course of business, under the court’s supervision.
Last year, Bordon revived spokescow Elsie, reintroduced its brand in Ohio, and launched several innovative products that earned local and national media acclaim, such as State Fair-inspired milk flavors, Gingerbread Eggnog and Kid Builder. The company’s growth last year outpaced the industry as it increased year-over-year sales.
“Despite our numerous achievements during the past 18 months, the company continues to be impacted by the rising cost of raw milk and market challenges facing the dairy industry,” Borden CEO Tony Sarsam explained. “These challenges have contributed to making our current level of debt unsustainable.”
Sarsam noted the company has filed expected motions that will allow it to pursue day-to-day operations. The company will seek court approval for these requests and intends to work closely with creditors, customers and employees to identify value-maximizing restructuring plans that will benefit all stakeholders. For more information, visit www.bordenfinancialreorg.com.
On Dec. 20, 2019, Dean Foods announced that the U.S. Bankruptcy Court for the Southern District of Texas has entered a final order granting the company authority to access the full amount of its $850 million in debtor-in-possession (“DIP”) financing.
Additional information is available on the restructuring page of the Company’s website, www.DeanFoodsRestructuring.com.
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