Dean Foods files for Chapter 11 bankruptcy with plans to sell itself

Dean Foods Co. Tuesday said it filed for chapter 11 bankruptcy and is in advanced talks to sell itself to Dairy Farmers of America Inc., the nation's largest dairy cooperative.

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The Dallas dairy producer said it has received a commitment of roughly $850 million in debtor-in-possession financing from some of its existing lenders, which it will use to fund continued regular operations.

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Dean Foods said it will use the bankruptcy process to address its debt and unfunded pension obligations while it pursues a sale.

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The company said it is advanced talks for the sale of substantially all of its assets to Dairy Farmers of America, adding that any deal would be subject to higher or otherwise better offers in the bankruptcy case.

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