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Borden Dairy files for Chapter 11 bankruptcy protection

Texas-based Borden Dairy Co. said Jan. 5 that the company filed for Chapter 11 bankruptcy protection in Delaware.

The privately held milk producer plans to use the court process to pursue a financial restructuring to reduce its debt. The company plans to continue operating in the ordinary course of business under the court's supervision.

The rising prices of raw milk and market challenges facing the dairy industry have impacted the company, Borden CEO Tony Sarsam said. The company listed both its assets and liabilities in the range of $100 million to $500 million in its bankruptcy filing.

"For the last few months, we have engaged in discussions with our lenders to evaluate a range of potential strategic plans for the company. Ultimately, we determined that the best way to protect the company, for the benefit of all stakeholders, is to reorganize through this court-supervised process," said Sarsam.

U.S. milk producer Dean Foods Co. also filed for Chapter 11 bankruptcy protection in November 2019.