Dean Foods receives court approval of 'first day' motions to support operations
Dean Foods announced that it has received approvals from the U.S. Bankruptcy Court for the Southern District of Texas for the "First Day" motions related to the company's voluntary Chapter 11 petitions filed on November 12, 2019. The Court granted Dean Foods interim approval to access up to $475M of the $850M in committed debtor-in-possession financing from certain of its existing lenders, which along with cash on hand and operating cash flows is expected to be sufficient to support the company's continued operations during this process. Among other things, the Court has authorized the company to continue paying employee wages and benefits without interruption and making payments to suppliers and vendors in full under normal terms for goods and services provided on or after November 12, 2019. Eric Beringause, President and CEO of Dean Foods, said, "We appreciate the swift action by the Court to approve these motions, which will enable us to continue operating as normal. As we move through this process, we remain focused on providing customers with wholesome, great-tasting dairy products and the highest levels of quality, service and value. I would also like to thank our employees, customers, dairy providers, lenders and other partners for their continued support."