- Tuesday, Nov. 12th: Bankruptcy documents filed
- Wednesday, Nov. 13th: Court pleadings and Orders entered for ongoing operations
- Wednesday, Nov. 13th: By close of day, over 125 document filed on court’s docket in less than 48 hours.
- Thursday, Nov. 14th: Word received farmers would receive payment for their previous month’s milk.
- Monday, Nov. 18th: Payments expected to be delivered to farmers
UPDATE – posted 6:35 pm Tues, Nov. 12: “Emergency Relief Has Been Requested. A Hearing will be Conducted on this Matter on November 13, 2019 at 2:30 pm [CST] in Houston Tex.” This information per court documents, TXSB.
Dean Foods, the nation’s largest processor of fluid milk, has filed Chapter 11 Bankruptcy in the Southern District of Texas. According to a company news release, Dean Foods states the company is working toward an ‘orderly and efficient sale of the Company.”
In the same release, Dean Foods also states it is “engaged in advanced discussions with 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, such transaction would be subject to regulatory approval and would be subject to higher or otherwise better offers in the bankruptcy.”
Related to the announcement, Dean Foods cancelled its regular Quarterly Earnings Call, which was scheduled to occur at 9:00 am on the morning of Nov. 12.
Information about the actions and proceedings can be accessed at http://www.deanfoodsrestructuring.com.
The major concern for dairy farm communities – especially the farmers, and related agribusinesses and community small businesses across the country who serve those farmers – will be how independent dairy farms, who ship directly to Dean Foods plants, will be affected, treated, and compensated during the Bankruptcy proceedings. Those detailed answers are not available at the time of this initial posting (11:50 am, EST, Nov. 12).
At this time, there are more unanswered questions than answers, and no doubt there will be many anxious farmers and co-ops around the country who depend on milk checks from Dean Foods. It will take time for accurate answers and solutions to be found as this process works through the reorganizational Bankruptcy process.
For now, here are some FAQ sheets, as posted at http://www.deanfoodsrestructuring.com:
Here is the related News Release as posted at http://www.deanfoodsrestructuring.com:
As the news broke on the morning of November 12, here are some additional links from financial news outlets:
From ‘Seeking Alpha’: Initial (breaking) News Release – Dean Foods Files Chapter 11; posted at 7:09 am – with a link to the news release below:
From ‘Seeking Alpha’: Dean Foods Company Initiates Voluntary Reorganization with New Financial Support from Existing Lenders, a posting with these bullets:
- Company secures commitments for $850 Million in DIP Financing to Support Operations
- In Advanced Discussions with Dairy Farmers of America Regarding a Potential Sale
- Business Continues Regular Operations; Customer Receiving Uninterrupted Supply of Dairy Products as Normal
From ‘Seeking Alpha’: Dean Foods EPS misses by $0.72 – posted at $9.38 am
More information will be posted as it becomes available.