Dean Foods approved for bankruptcy; bondholders want fair market sale
November 18, 2019 By Nicole Heslip Filed Under: Ag Mergers & Acquisitions, Dairy, News
Dean Foods has been approved for Chapter 11 bankruptcy, but
questions remain if DFA can buy most of its assets.
A federal court has approved access up to $475 million of
the $850 million in committed debtor-in-possession financing from existing
lenders, which is expected to support the company’s continued operations as it
looks for a buyer.
Dairy farmer suppliers to one of the nation’s largest milk
processors have been told they do have a home for their milk as Deans
While Deans claims it’s in advanced discussions with Dairy
Farmers of America to sell most of their assets, a deal must pass an antitrust
During the bankruptcy hearing, an attorney for a third of
the company’s bondholders said that while Deans is “focusing exclusively” on a
combination with DFA, isn’t “value-maximizing.” Bondholders don’t want a quick-fire
sale, but rather an opportunity for other interested parties to submit
proposals based on the company’s true market value.
Deans sources about 60 percent of the milk it processes from
DFA while only accounting for about 20 percent of DFA’s sales.
Your email address will not be published.
Subscribe for our newsletter today and receive relevant news straight to your inbox!