Borden Dairy bankruptcy news is spreading following a voluntary filing from the company.
Here’s what to know about the Borden Dairy bankruptcy.
- The company has initiated voluntary reorganization proceedings in the District of Delaware under Chapter 11 of the Bankruptcy Code.
- It plans to continue normal operations throughout this process and has already filed the paperwork to do so.
- The goal is for the company to use the filing to lower debt, maximize value and get it ready for long-term success.
- Borden Dairy notes that it saw strong growth over the last 18 months that outpaced the rest of the dairy industry.
- Positives for the company include bringing back its mascot, reintroducing the brand in Ohio, and new products that caught national attention.
- Its struggles come from the increasing price of raw milk, as well as other challenges in the dairy industry.
- According to Borden Dairy CEO Tony Sarsam, these are major factors behind its debt issues.
- There’s no timeframe for when the Borden Dairy bankruptcy will come to an end.
Here’s what Sarsam has to say about the Borden Dairy bankruptcy filing.
“For the last few months, we have engaged in discussions with our lenders to evaluate a range of potential strategic plans for the Company. Ultimately, we determined that the best way to protect the Company, for the benefit of all stakeholders, is to reorganize through this court-supervised process.”
As of this writing, William White did not hold a position in any of the aforementioned securities.