Pipeline Foods Voluntarily Files Chapter 11 Bankruptcy | New
FRIDLEY, Minnesota., July 9, 2021 / PRNewswire / – Pipeline Foods, LLC announced today that it and certain subsidiaries and affiliates (collectively, the “Company” or “Pipeline Foods”) have filed voluntary petitions seeking relief under the Chapter 11 of the Bankruptcy Code in United States District Bankruptcy Court Delaware (the “Bankruptcy Court”).
Details on the Chapter 11 process and the company’s future strategy are as follows:
- Continuous operations: The Company will file customary petitions with the Bankruptcy Court which will, upon approval by the Bankruptcy Court, authorize the Company’s ability to operate within a cash collateral budget, including, but not limited to, the payment of salaries. and uninterrupted employee benefits and use of cash collateral. These requests are typical of the Chapter 11 process and the company anticipates that they will be approved shortly after the start of its Chapter 11 case.
- Assessment of strategic alternatives to maximize value: The Company will continue its pre-filing efforts to assess all strategic alternatives, including the sale of all or substantially all of the assets of its business with the aim of maximizing value and collection for all creditors. In conjunction with this process, the Company plans to seek authorization to sell its grain inventories outside the normal course of business at market prices in order to facilitate the Company’s use of cash collateral.
- First hearing: The first hearing is scheduled for July 14, 2021.
Antoine Sepich, CEO of Pipeline Foods, LLC, said: “[t]The impact of the coronavirus pandemic (COVID-19) coupled with the Company’s covered bonds caused significant financial difficulties for our company. Accordingly, we believe that a bankruptcy filing and potential sale of the business, parts of the business and some of its assets is the best way forward to unlock value for the benefit of all creditors. I would like to thank all of our employees, producers, customers and business partners for their dedication and continued support during these unprecedented times. “
Pipeline Foods is represented by Saul Ewing Arnstein & Lehr, LLP with Michel Gesas as the main board. The financial advisor to Pipeline Foods, LLC is SierraConstellation Partners. Pipeline’s Director of Restructuring is Winston Mar SierraConstellation partners. The claims agent for Pipeline Foods is Stretto.
All media inquiries should be directed to Erin heitkamp, senior vice president of Pipeline Foods, LLC. email@example.com
About Pipeline Foods
Pipeline Foods is the leading US-based supply chain solutions company focused exclusively on non-GMO, organic and regenerative food and feed. Its dedicated team brings transparent and sustainable supply chain solutions to connect the dots to its agricultural partners and end users of grains and organic ingredients. Learn more about Pipeline on https: www.pipelinefoods.com
SOURCE Pipeline Foods