U.S.-based supply chain solution company Pipeline Foods, which focuses exclusively on organic, non-GMO, and regenerative food and feed, has filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware, reports Food Business News.
“The impact of the coronavirus pandemic coupled with the company’s secured debt obligations have caused significant financial distress on our business,” said Anthony Sepich, CEO of Pipeline Foods. “As a result, we believe that a bankruptcy filing and a potential sale of the business, portions of the business, and certain of its assets is the best path forward to unlock value for the benefit of all creditors. I would like to thank all of our employees, growers, customers, and business partners for their dedication and continued support through these unprecedented times.”
Pipeline Foods said it will begin filing customary motions with the bankruptcy court that will authorize it to operate within a cash collateral budget, allowing for the payment of employee wages and benefits without interruption. In addition, Pipeline Foods said it expects to seek approval to sell its grain inventory outside of the ordinary course at market prices in an effort to facilitate the company’s use of cash collateral.
The first hearing in the company’s bankruptcy court case is set for July 14. Full Story
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