Dean Foods disclosure statement approved; plan hearing March 17

By Sarah Lizee

Olympia, Wash., Feb. 1 – Dean Foods Co.’s disclosure statement for its Chapter 11 plan of liquidation was approved Friday by the U.S. Bankruptcy Court for the Southern District of Texas.

A plan confirmation hearing has been scheduled for March 17.

Distributions will be funded through a liquidation trust, according to the disclosure statement.

Under the plan, holders of other secured claims and other priority claims will receive payment in full in cash.

Holders of senior notes claims, control group liability pension claims, central states pension claims and general unsecured claims will receive their pro rata share of liquidating trust assets after the satisfaction in full of all allowed claims that are senior in priority and the satisfaction of plan adjustment payments.

Holders of convenience claims will receive their pro rata share of the convenience claims pool.

All pre-petition intercompany claims will be adjusted, reinstated or discharged at the debtors’ discretion.

Section 510(b) claims and existing interests will be canceled with no distribution.

Intercompany interests will be either reinstated or canceled.

Dean Foods is a Dallas-based food and beverage company. The company filed bankruptcy on Nov. 12, 2019 under Chapter 11 case number 19-36313.

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