Borden Dairy seeks exclusivity extension amid dual-track exit process

By Caroline Salls

Pittsburgh, May 5 – Borden Dairy Co. requested an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a motion filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

Borden asked the court to extend its exclusive plan-filing period through Aug. 3 from May 4 and the solicitation period through Oct. 5 from July 6.

The company said it received indications of interest from several parties interested in bidding on Borden’s assets. The interested bidders are completing due diligence and negotiating with the company.

At the same time, Borden said it is continuing on a parallel path of exploring a possible restructuring with its lenders through a consensual plan of reorganization, and discussions are ongoing while the company continues to pursue the process to identify buyers or plan investors.

According to the motion, the company’s next milestone requires it to file proposed bidding procedures or a plan and disclosure statement.

As a result, by the time the exclusivity extension is heard, Borden said the debtors “will have met the required milestone and should be well on their way to consummating a sale and/or confirming a plan to exit these cases.”

A hearing is scheduled for May 27.

Borden is a Dallas-based dairy company. The company filed bankruptcy on Jan. 5 under Chapter 11 case number 20-10010.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.