Dean Foods Files For Bankruptcy

(RTTNews) - Dean Foods Co. (DF) said Tuesday that it has voluntarily filed for Chapter 11 bankruptcy protection. It is working toward an orderly and efficient sale of the company.

"Despite our best efforts to make our business more agile and cost-efficient, we continue to be impacted by a challenging operating environment marked by continuing declines in consumer milk consumption," said Eric Beringause, who recently joined Dean Foods as President and Chief Executive Officer.

The company said it received a commitment of about $850 million in debtor-in-possession financing from certain of its existing lenders, led by Rabobank.

The company also noted that it is engaged in advanced discussions with Dairy Farmers of America Inc. regarding a potential sale of substantially all assets of the company.

The company expects to use the financing, together with cash on hand and operating cash flows, to support its continued operation throughout this process, including payment of employee wages and benefits.

In September, Dean Foods, which had been considering strategic alternatives, said it decided that the execution of its standalone operating plan would be the best opportunity for the company. The company had been looking at strategic options since February.