Dairy giant Dean Foods (DF) announced that it filed for Chapter 11 bankruptcy protection and a deal to sell almost all of its assets.
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The Texas-based firm said it was in talks over a potential sale of its assets with Dairy Farmers of America, a company owned by farmers. Dean Foods has been struggling in recent years as health-conscious U.S. consumers shift to non-dairy and private-label alternatives. "We continue to be impacted by a challenging operating environment marked by continuing declines in consumer milk consumption," Chief Executive Officer Eric Beringause said.
Moody's Investors Service ("Moody's") downgraded Dean Foods Company's ("Dean") Probability of Default Rating (PDR) to D-PD from Caa2-PD following the company's Chapter 11 filing on 12 November, 2019. Dean's Corporate Family Rating (CFR) was downgraded to Ca from Caa2 and the senior unsecured notes were downgraded to Ca from Caa3.
The dairy farmers cooperative in Kansas City, Kan., is in line to buy the assets of 44 milk-processing facilities, if approved by the court and U.S. Department of Justice.
Dean Foods and substantially all of its subsidiaries initiated a voluntary bankruptcy proceedings in the Southern District of Texas, the Dallas-based company said in a press release. At the same time the company is in talks with the Dairy Farmers of America to explore a sale of substantially all of its assets. In the interim, Dean Foods is operating as usual after receiving a commitment of around $850 million in debtor-in-possession financing from some of its lenders.
DALLAS, Nov. 12, 2019 /PRNewswire/ -- Dean Foods Company (DF) ("Dean Foods" or the "Company") today announced that it and substantially all of its subsidiaries have initiated voluntary Chapter 11 reorganization proceedings in the Southern District of Texas. The Company intends to use this process to protect and support its ongoing business operations and address debt and unfunded pension obligations while it works toward an orderly and efficient sale of the Company. Dean Foods also announced that it is engaged in advanced discussions with Dairy Farmers of America, Inc. ("DFA") regarding a potential sale of substantially all assets of the Company.
While the overall economy saw gains in 2019, retail chains unable to compete with online competitors were forced to close hundreds of stores amid bankruptcy filings this year.
The Court granted Dean Foods interim approval to access up to $475 million of the $850 million in committed debtor-in-possession ("DIP") financing from certain of its existing lenders, which along with cash on hand and operating cash flows is expected to be sufficient to support the Company's continued operations during this process. Among other things, the Court has authorized the Company to continue paying employee wages and benefits without interruption and making payments to suppliers and vendors in full under normal terms for goods and services provided on or after November 12, 2019.
America's biggest milk producer Dean Foods filed for Chapter 11 bankruptcy protection. The nearly 95-year old company is behind brands like Land-O-Lakes, Tuscan Dairy Farms and Trumoo. The On the Move panel breaks down who they think could potentially buy the company.
Moody's Investors Service, ("Moody's") affirmed all ratings for Dairy Farmers of America, Inc. ("DFA") and changed its rating outlook to stable from negative. This change follows the closing of DFA's purchase of 44 facilities from Dean Foods Company ("Dean") for $433 million financed by a new $450 million delayed draw term loan (not rated by Moody's). The rating affirmations and change to a stable outlook reflect that DFA's purchase of various plants from bankrupt Dean provides clarity on the outlet for DFA members' milk though it also increases business risk and leverage.
The country's largest milk producer announced that it has found a possible stalking horse bidder for a "substantial portion" of its business operations.
The proposed deal includes acquiring 44 of the Dallas-based milk processor's facilities, its delivery system and some of its other assets for $425 million plus the assumption of various liabilities.
Prompted by Friendly’s abrupt April 2019 shutdown of 23 restaurants in five states at the cost of hundreds of jobs, U.S. Sen. Chuck Schumer proposed tightening federal laws requiring that workers get fair warnings of layoffs.
NEW YORK , Nov. 12, 2019 /PRNewswire/ -- Kinsale Capital Group, Inc. (NASD: KNSL) will replace Dean Foods Company (NYSE: DF) in the S&P SmallCap 600 effective prior to the open of trading on Monday, November ...
Investing.com - Dean Foods (NYSE:DF) has filed for Chapter 11 bankruptcy protection, the company said on Tuesday.
Dean Foods Co. General Counsel Kristy Waterman and Chief Financial Officer Gary Rahlfs officially filed documents Tuesday seeking to voluntarily restructure the Dallas-based food and beverage company under Chapter 11 of the U.
Moody's Investors Service ("Moody's") affirmed all ratings for Dairy Farmers of America, Inc. ("DFA") and changed its rating outlook to negative from stable. Moody's cited the Chapter 11 bankruptcy filing of Dean Foods Company ("Dean", Ca negative) as a credit negative to DFA's business as it will cause near term uncertainty and disruption to DFA's fluid milk sales. Dean is an important customer to DFA as it provides a material outlet for approximately 20 percent of DFA members' milk.
As part of Dean Foods' Chapter 11 bankruptcy process, Dairy Farmers of America will acquire 44 of the company's fluid and frozen assets for $433 million in cash.
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