Borden Dairy files for bankruptcy

Borden, an American dairy company founded in 1857, has announced that it and certain affiliates have initiated voluntary reorganization proceedings in the District of Delaware under Chapter 11 of the Bankruptcy Code. The company intends to use the court process to pursue a financial restructuring designed to reduce its current debt load, maximize value, and position the company for long-term success. Borden plans to continue operating in the ordinary course of business, under the court’s supervision.

“Borden is EBITDA-positive and growing, but we must achieve a more viable capital structure,” said Borden CEO Tony Sarsam in a company press release. “Despite our numerous achievements during the past 18 months, the company continues to be impacted by the rising cost of raw milk and market challenges facing the dairy industry. These challenges have contributed to making our current level of debt unsustainable. 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.”

Press release