Dean Foods is suing for bankruptcy in talks to sell substantially all of its assets

Dean Foods Co.

DF, + 2.29%

voluntarily applied for Chapter 11 bankruptcy protection on Tuesday, and the dairy company said it was working towards an "orderly" sale of the company. The company, which brands include DairyPure, Land O Lakes and Lehigh Valley Dairy Farms, said it has secured $ 850 million in debt-in-possession (DIP) funding to support operations during the process. The company said it has been in advanced discussions with Dairy Farmers of America Inc. about the potential sale of substantially all of its assets. "The actions we announce today are designed to allow us to continue to serve our customers and function normally as we work to sell our business," says CEO Eric Beringause. "Despite our best efforts to make our business more agile and cost-effective, we continue to be affected by a challenging operating environment characterized by continued decline in milk consumption." The stock, which was halted for news, had closed on Monday at 80 cents. It had dropped 79% so far this year, while the S&P 500

SPX, -0.20%

has climbed 23%.

Source link

Back to top button