Deans has burned through over half of the DIP financing already I find that very questionable are we not making any profit?
9 replies (most recent on top)
Somebody knows what's coming stock is up over 11.5 cents all of a sudden!!!
Nobody knows what is going on and nobody is going to know until the Feb 11th court hearing.
I completely agree with the below post. A lot of posters are just spewing the info that their managers are repeating to them. The "Its going to be ok." "DFA is buying us whole". The propaganda that is coming down from corporate and then being told to employees is sad. You need to understand something, we were fed everything we wanted to hear to keep us focused through the holidays. Holidays are over. Crickets from corporate. I heard from a few friends at other dairies that they are being told that DFA is finalizing takeover. I asked them whom they heard that from and they said that their supervisors are telling them that. If you truly believe that DFA is going to takeover Deans as a whole then I have some oceanfront property in Arizona I'd like to sell you cheap.
I don't know where some of you get your information but it's dead wrong. The trustee / bankruptcy court is not running the business, Dean Foods is. The loans that were provided pre-chapter 11, the $265MM line of credit, was rolled into the DIP credit agreement that is secured by first position liens on all the plants. Do your own due diligence. Read the DIP agreement if you have a few hours to k–l...
Those 16 plants have nothing to do with the DIP loan. That was part of a line of credit that was extended to Dean's by several US based banks. That happened before the bankruptcy filing. The DIP loan came from a bank based in Denmark
At the rate Deans is bleeding money, the trustee is not doing anything better. The judge released it with bank approval because the bank has all 16 plants as collateral. Following CH 11, Deans gets their approved DIP per 11/11 court procedures. Banks could care less because in the end they acquire all of Deans!
Dean's management isn't running the company anymore the bankruptcy court/trustee are running it the judge probably released the rest of the money because he knows the court is in control.
What is happening in February?
I am also concerned about money burned. Every plant is being pushed hard, the week after bankruptcy most employees were over paid by "accident" add that amount up with the thousands of employees and that is laundering. Then within a six week perios they need to tap into the 2nd half of the DIP funding. Something is wrong. I dont know about all plants but I would think the plants are making money. Definately someyhing wrong. What will happen come February besides massive layoffs and chapter 7?