Borden Dairy Files Chapter 11 Bankruptcy
Borden Dairy, founded in 1857, today announced that it has initiated voluntary reorganization proceedings in the District of Delaware under Chapter 11 of the Bankruptcy Code. Borden plans to continue operating in the ordinary course of business, under the court's supervision.
Borden CEO Tony Sarsam said, "The Company continues to be impacted by the rising cost of raw milk and market challenges facing the dairy industry." These challenges have contributed to making our current level of debt unsustainable.
The price of raw milk has gone up 35% over 2019. Meanwhile, retail prices have remained mostly unchanged over the course of the year.
The Dallas based company had proactively filed expected motions as part of the court-supervised process, which allow it to pursue day-to-day operations.
Sarsam explained. "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."
For additional information about the reorganization, visit www.bordenfinancialreorg.com.