Dean Foods Receives Final Court Approval for $850 Million in Debtor-In-Possession Financing
December 20 2019 - 12:12PM
Business Wire
Dean Foods Company (NYSE: DF) (“Dean Foods” or the “Company”)
today announced that the U.S. Bankruptcy Court for the Southern
District of Texas has entered a final order granting the Company
authority to access the full amount of its $850 million in
debtor-in-possession (“DIP”) financing. The Company had previously
received interim approval from the Court to access up to $475
million of the DIP financing. The Court also granted all other
relief sought, including providing final approvals for certain
other of the Company’s “First Day Motions” intended to support the
business.
Eric Beringause, President and Chief Executive Officer of Dean
Foods, said, “We are pleased to have received final Court approval
of our DIP credit facility. I can’t thank our employees enough for
their continued dedication and hard work, and our suppliers,
customers and other partners for their support and patience as we
move through this process. We remain focused on providing customers
with an uninterrupted supply of high-quality dairy products.”
As previously announced, Dean Foods and all of its wholly owned
subsidiaries filed voluntary petitions for reorganization under
Chapter 11 of the Bankruptcy code on November 12, 2019. Additional
information is available on the restructuring page of the Company’s
website, www.DeanFoodsRestructuring.com. In addition, court filings
and other information related to the proceedings are available on a
separate website administered by the Company’s claims agent, Epiq
Corporate Restructuring, LLC, at
https://dm.epiq11.com/SouthernFoods, or by calling Epiq
representatives toll-free at 1-833-935‐1362 or 1-503-597-7660 for
calls originating outside of the U.S.
Davis Polk & Wardwell LLP and Norton Rose Fulbright are
serving as legal advisors to the Company, Evercore is serving as
its investment banker and Alvarez & Marsal is serving as its
financial advisor.
About Dean Foods
Dean Foods is a leading food and beverage company and the
largest processor and direct-to-store distributor of fresh fluid
milk and other dairy and dairy case products in the United States.
Headquartered in Dallas, Texas, the Dean Foods portfolio includes
DairyPure®, the country's first and largest fresh, national white
milk brand, and TruMoo®, the leading national flavored milk brand,
along with well-known regional dairy brands such as Alta Dena®,
Berkeley Farms®, Country Fresh®, Dean's®, Friendly's®, Garelick
Farms®, LAND O LAKES®* milk and cultured products, Lehigh Valley
Dairy Farms®, Mayfield®, McArthur®, Meadow Gold®, Oak Farms®,
PET®**, T.G. Lee®, Tuscan® and more. Dean Foods also has a joint
venture with Organic Valley®, distributing fresh organic products
to local retailers. In all, Dean Foods has more than 50 national,
regional and local dairy brands as well as private labels. Dean
Foods also makes and distributes ice cream, cultured products,
juices, teas, and bottled water. Approximately 15,000 employees
across the country work every day to make Dean Foods the most
admired and trusted provider of wholesome, great-tasting dairy
products at every occasion. For more information about Dean Foods
and its brands, visit www.deanfoods.com.
*The LAND O LAKES brand is owned by Land O’Lakes, Inc. and is
used by license.
**PET is a trademark used by license.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements, other than statements of historical facts,
included in this release that address activities, events or
developments that the Company expects, believes, targets or
anticipates will or may occur in the future are forward-looking
statements. The Company's actual results may differ materially from
those anticipated in these forward-looking statements as a result
of certain risks and other factors, which could include the
following: risks and uncertainties relating to the Company's
Chapter 11 cases (the "Chapter 11 Case"), including but not limited
to, the Company's ability to obtain bankruptcy court approval with
respect to motions in the Chapter 11 Case, the Company's ability to
consummate the planned sale of the business pursuant to the Chapter
11 Case and, if consummated, to obtain an adequate price, the
effects of the Chapter 11 Case on the Company and on the interests
of various constituents, bankruptcy court rulings in the Chapter 11
Case and the outcome of the Chapter 11 Case in general, the length
of time the Company will operate under the Chapter 11 Case, risks
associated with third-party motions in the Chapter 11 Case, the
potential adverse effects of the Chapter 11 Case on the Company's
liquidity or results of operations and increased legal and other
professional costs necessary to execute the Company's
reorganization; the conditions to which the Company's
debtor-in-possession financing is subject and the risk that these
conditions may not be satisfied for various reasons, including for
reasons outside of the Company's control; the consequences of the
acceleration of our debt obligations; as well as other risk factors
set forth in the Company's Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q filed with the Securities and Exchange
Commission. Additionally, there can be no assurances that Dean and
DFA will ultimately reach agreement, that the sale will receive
regulatory approval, or that the sale will be successfully
consummated. The Company therefore cautions readers against relying
on these forward-looking statements. All forward-looking statements
attributable to the Company or persons acting on the Company's
behalf are expressly qualified in their entirety by the foregoing
cautionary statements. The Company expressly disclaims any
obligation or undertaking to release publicly any updates or
revisions to any such statements to reflect any change in its
expectations with regard thereto or any changes in the events,
conditions or circumstances on which any such statement is based
except as required by law.
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Investor Relations +1 214-303-3438
Media +1 214-721-7766 media@deanfoods.com
Michael Freitag / Viveca Tress / Lucas Pers Joele Frank,
Wilkinson Brimmer Katcher +1 212-355-4449
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