Dean Foods, America’s largest milk processor has filed for Chapter 11 bankruptcy.
A statement from the company says they intend to use this process to protect and support its ongoing business operations and address debt and unfunded pension obligations while it works towards a sale of the company.
Dean Foods says it is engaged in advanced discussions with Dairy Farmers of America, Inc. regarding a potential sale of substantially all assets.
The Company has received a commitment of approximately $850 million in debtor-in-possession financing from some of its existing lenders and together with cash on hand and operating cash flows, to continue operations including payment of employee wages and benefits without interruption and payment to suppliers and vendors in full under normal terms for goods and services provided on or after the filing date.
Dean Foods operates a milk plant in Le Mars.