Borden Dairy announced this week that it and certain affiliates have received court approval of all initial motions filed after it initiated voluntary reorganization proceedings in the District of Delaware under Chapter 11 of the Bankruptcy Code.
The approvals provide interim authorization for the company to continue paying employee wages, benefits and reimbursable expenses as well as critical vendor invoices and expenses related to pre-petition obligations to customers that were committed to prior to filing.
“We are thrilled that Borden had a very productive court hearing last week,” Borden chief executive officer Tony Sarsam said. “Earning these approvals was an important milestone as we continue normal business operations and work to resolve this matter expeditiously.”
Borden’s next court hearing is scheduled for Jan. 23, when it hopes to be granted approval to continue normal business operations beyond the initial 30-day period and for the remainder of court proceedings.
“Borden employees have done a superhuman amount of work to ensure that there are minimal interruptions to our business,” Sarsam said. “I want to offer my heartfelt thanks to these special employees for all their work to take care of the Borden family and those we love to serve, truly living ‘The Borden Difference.’”
The company initiated the voluntary reorganization proceedings on Jan. 5 to pursue a financial restructuring designed to reduce its current debt load, maximize value and position the company for long-term success. It intends to work closely with creditors, customers and employees to identify value-maximizing restructuring plans that will benefit all stakeholders.