Dean Foods gets court approval for normal business operations

By Jim Cornall contact

- Last updated on GMT

The court authorized the company to continue paying employee wages and benefits without interruption.
The court authorized the company to continue paying employee wages and benefits without interruption.

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Dean Foods Company 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 (DIP) 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 chief executive officer 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.

“I would also like to thank our employees, customers, dairy providers, lenders and other partners for their continued support."

Davis Polk & Wardwell LLP and Norton Rose Fulbright are serving as legal advisors to the company, Evercore is serving as its investment banker and Alvarez & Marsal is serving as its financial advisor.

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