Back to News

Dean Foods Looks to Sell in Ch. 11

Published: November 22nd, 2019
Just two months after concluding a strategic review, Dean Foods has filed for bankruptcy protection with Dairy Farmers of America the likely lead bidder.

Just two months after concluding a strategic review, Dean Foods Co. (DF) has filed for bankruptcy protection with plans to sell its assets.

The Dallas dairy company and 42 affiliates submitted Chapter 11 petitions on Tuesday, Nov. 12, in the U.S. Bankruptcy Court for the Southern District of Texas.

In a statement, Dean Foods said it was in advanced sale discussions with Dairy Farmers of America Inc. The Kansas City, Kan., cooperative produces Borden cheese and Keller’s Creamery butter, and its members deliver milk to Dean Foods. Court papers show DFA is the debtor’s third-largest unsecured creditor, owed $172.92 million.

Dean Foods intends to file bidding procedures that could center on the DFA deal and to pursue development of a standalone reorganization plan with creditors.

A first-day hearing has yet to be set before Chief Judge David R. Jones on motions including a requests for interim use of roughly $850 million in debtor-in-possession financing from existing lender Rabobank NA. Securities and Exchange Commission filings show the DIP would include a $234.8 million new-money revolving credit facility and refinance about $189 million in revolving debt.

Jones on Tuesday approved joint administration of the cases, with Southern Foods Group LLC as the lead debtor.

Editor’s note: The original version of this article, including advisers and other details, was earlier published on The Deal’s premium subscription website. For access, log in to or use the form below to request a free trial.

This Content is Only for The Deal Subscribers

The Deal provides actionable, intraday coverage of mergers, acquisitions and all other changes in corporate control to institutional investors, private equity, hedge funds and the firms that serve them.

If you’re already a subscriber, log in to view this article here.

More From Restructuring

Private Equity

Tri-Point to Liquidate After Bidder Walks Away

By David Elman
Published: March 19th, 2020
The First Reserve-backed oilfield services company files for Chapter 11 to wind down after market conditions lead a bidder to cease due diligence.

Ch. 11 Filings to Increase With Fade of Extend and Pretend

By Kirk O’Neil
Published: February 5th, 2020
Bankruptcy attorneys and advisers predict an increase in petitions this year as the energy, retail and healthcare sectors struggle while lenders are more open to foreclose on assets.