Dairy Farmers of America Inc. (DFA) this week said discussions continue with Dean Foods regarding the potential purchase of certain assets. After reports surfaced this week, DFA also confirmed that it has had interactions with the U.S. Department of Justice and other appropriate partners.
“When the largest processor of raw milk in the world files for bankruptcy, we have an obligation to do what we can to secure those markets and work to minimize disruption to our members and farmers,” DFA executive vice president and chief of staff Monica Massey said in a statement. “As such, we have a keen interest in as many of Dean's plants continuing to operate as possible.”
If an agreement is reached with Dean for all or part of its assets, Massey said the deal will be subject to various approvals, notably by the bankruptcy court and DOJ.
“If a deal is reached, we will fully cooperate with DOJ officials, as we have done with past transactions,” she said.
Dean Foods told Feedstuffs that it is unable to provide further comment at this time.
Dean announced Nov. 12 that it and substantially all of its subsidiaries have initiated voluntary Chapter 11 reorganization proceedings in the Southern District of Texas. At the time, the company also announced that it was engaged in advanced discussions with DFA regarding a potential sale of substantially all of its assets.
Since then, the U.S. Bankruptcy Court for the Southern District of Texas entered a final order granting the company authority to access the full amount of its $850 million in debtor-in-possession financing. The court also granted all other relief sought, including providing final approvals for certain of the company's “First Day Motions” intended to support the business.