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This Week's Other Stories:

EDITORIAL COMMENT:
Coronavirus: A Once-In-A-Century Dairy Issue

OTHER NEWS:
Global Dairy Trade Price Index Falls 3.9%, But Most Product Prices Rise

OTHER NEWS:
FDA Temporarily Postpones All US Routine Surveillance Plant Inspections

GUEST COLUMNISTS: Coronavirus Creating Lots of Uncertainty

COMPANY PROFILE: Alemar Cheese Moves To Minneapolis; Sister Company Grows In California

PREVIOUS COLUMNS:

How To Achieve
SQF Certification by Brandis Wasvick, Blue Compass Compliance

The Grow or Die Myth by Dan Strongin

Perfect Day at the Dairy Forum by John Umhoefer, WCMA

The Bakery Methods of Accounts Receivable: To Collect...Take a Number by Jen Pino-Gallagher, M3 Insurance

‘Sir, There’s a Minnow in my Muenster’:
Recall Insurance Past And Present by Jim Brunker, M3 Insurance

Boots On The Ground
by Jim Cisler

As FSMA Takes Full Effect, Partnership Opportunities Abound To Improve Food Safety Practices by Larry Bell and Jim Mueller

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DFA No Longer Stalking Horse Bidder In Dean Foods’ Bankruptcy Proceeding

Dean Foods Company and Dairy Farmers of America (DFA) this week decided to proceed in Dean’s bankruptcy proceeding without DFA as the Stalking Horse Bidder for substantially all of Dean’s assets.

Last month, Dean Foods and DFA reached an agreement for DFA to become the Stalking Horse Bidder to acquire a substantial portion of Dean’s assets and business operations. As part of that proposed deal, DFA agreed to pay a base purchase price of $425 million, and assume various liabilities, subject to certain adjustments, to acquire 44 of Dean’s facilities and associated direct store delivery system, as well as certain corporate and other assets and functions.

Since then, several objections to DFA’s designation as the Stalking Horse Bidder were filed with the US Bankruptcy Court for the Southern District of Texas. After an initial court hearing last Thursday, Dean said it conferred “extensively” with several parties in an effort to obtain consensus on changes to the bidding procedures. In connection with those discussions, DFA and Dean Foods determined to proceed without being the Stalking Horse Bidder and without bid protections. Accordingly, Dean withdrew its request for approval of DFA as a Stalking Horse Bidder, and Dean and DFA have agreed to mutually terminate the existing asset purchase agreement.

The withdrawal by Dean of its request for a Stalking Horse Bidder does not signal a withdrawal by DFA from the bidding process. Dean expects and believes that by avoiding litigation over procedure, all parties-in-interest, will focus on developing competitive and value-maximizing bids, Dean filed with the bankruptcy court Wednesday.

The deadline to submit a bid for one or more bid assets is Mar. 30, at 12:00 p.m. CST. The deadline to file and serve an objection to the sale order(s) or the sale transaction(s) is April 1, at 12:00 p.m. A hearing to consider proposed sale order(s) and sale transaction(s) will be held before the court on April 3, at 9:00 a.m.

Last week, an Ad Hoc Committee of Dairy Cooperatives filed a “Limited Objection” to the motion by Dean for the US Bankruptcy Court to approve the designation of DFA as the Stalking Horse Bidder for substantially all of Dean’s as. ...


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