Selasa, 12 November 2019

Dean Foods, America's biggest milk producer, files for bankruptcy - CNBC

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Dean Foods on Tuesday announced that it has filed for Chapter 11 bankruptcy protection.

The Dallas-based milk processor said that it plans to use the Chapter 11 proceedings to keep running the business, and address debt and unfunded debt obligations as it seeks to sell the company. Dean Foods has secured commitments for $850 million in debtor-in-possession financing, a type of funding for companies in financial distress. Customers are expected to receive their dairy products without any interruptions.

Dean Foods also said that it is engaged in "advanced discussions" with Dairy Farmers of America about selling "substantially" all of its assets. Even if both parties agree to the sale, the transaction would be subject to receiving higher or better offers while the company is in bankruptcy.

In September, Dean Foods said that it had concluded a strategic review and decided against a sale. CEO Eric Beringause joined the company three months ago after serving as chief executive of dairy producer Gehl Foods.

Dean Foods' business has struggled as more consumers turn to nondairy milk or buy private label products from the likes of Walmart, which began processing its own milk in 2017. In seven of its last eight quarters, Dean Foods has reported a net loss.

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https://www.cnbc.com/2019/11/12/dean-foods-americas-biggest-milk-producer-files-for-bankruptcy.html

2019-11-12 12:44:00Z
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