Farmland Dairies LLC announced that the U.S. Bankruptcy Court for the Southern District of New York has confirmed the company's plan of reorganization.
"The confirmation of our plan is the final step toward allowing Farmland to emerge from bankruptcy as a leading independent dairy processor," said James A. Mesterharm, chief restructuring officer of Farmland.
Farmland is reorganizing around its fresh milk and dairy products business in the Northeast and its national aseptic milk products business, based in Grand Rapids, Mich.
The newly emerged Farmland Dairies LLC will be led by Martin J. Margherio, the company's president, who will assume the position of president and CEO. Margherio believes that Farmland is well positioned to grow profitably in the future: "Farmland has made significant efforts to become more competitive over the past year while in bankruptcy. Our plan is to continue to emphasize efficiencies in our operations, while growing business through our high-quality products, including the Farmland, Skim Plus, Parmalat Aseptic and 'Lil Milk' brands."
Margherio went on to thank those who have contributed to the successful completion of the bankruptcy: "I would like to personally thank our loyal customers, employees, suppliers and dairy farmers who have supported Farmland through these difficult times. We are excited about our future and look forward to emerging from bankruptcy as a well-positioned dairy industry leader."
Farmland confirmed its plan with exit financing commitments totaling $100 million from two lenders, including a $45 million term loan from GE Commercial Finance. The equity of the emerged Farmland will be majority owned by the company's pre-petition leasing syndicate which is led by GE Commercial Finance, Public Finance.