Borden gets approval of bid procedures as part of dual-track process

By Caroline Salls

Pittsburgh, May 22 – Borden Dairy Co. obtained court approval of the bid procedures for the proposed sale of substantially all of its assets, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, along with its sale process, the Borden debtors are also continuing to explore a consensual restructuring with their pre-bankruptcy lenders, which could include a debt-to-equity recapitalization transaction.

Under the approved bid procedures, bids are due by noon ET on June 1, and an auction will be held on June 3, if necessary.

The bid procedures allow the company to select a stalking horse bid to serve as a baseline at auction, as well as to offer that bidder a break-up fee and expense reimbursement to be paid if it is not ultimately the winning bidder.

Competing bids must exceed any stalking horse bid by the amount of the bid protections, plus a $1 million minimum overbid amount.

Bids at auction must also be made in minimum increments of $1 million.

The sale hearing is scheduled for June 8.

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

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