Thread regarding Dean Foods Co. layoffs

This DFA deal is bad

44 plants and all the stuff that goes with them for 425 million dollars? That's 9.7 million dollars per plant. That's dirt cheap. When Deans filed bankruptcy and reported they were talking to DFA the lawyer for the bondholders protested. He stated that DFA would get to pick the best assets for cheap and leave the garbage that nobody would want. Well that's EXACTLY what happened. At my plant the land is worth 10 million and the trucks and trailers could be worth a couple million. Maybe get a half million out of the equipment probably more. The lenders, creditors bondholders and shareholders will protest this deal.

And if the deal goes through and if I'm lucky enough to be offered a job I'll be treated as a new hire? DFA won't honor Union contracts. The Teamsters will protest that in court.

DFA has also set the market value for Deans assets. If big bad DFA values each of the plants with all their equipment at only 9.7 million dollars other bidders won't have to offer much to outbid DFA. The city that my plant is located has wanted our property for decades and have made it known they want it. They can submit a bid offering 11 million just for the land and someone else can bid on the rest.

Also if big bad DFA sees Dean employees as new hires another diary that may buy your plant could do the same thing.

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| 2204 views | | 13 replies (last February 26, 2020) | Reply
Post ID: @OP+13AvLCkx

13 replies (most recent on top)

I work for Deans and don’t know what’s going on, I work at the OK plant and I believe we might be going down hill.

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Post ID: @7dwv+13AvLCkx

The creditors are not in the mood to play pass the debt to someone else. DFA seems to be on shaky ground as well. They have been closing down plants. Yet they want to buy 40 unprofitable dumps. This deal is looking more and more like a scam.

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Post ID: @2ckr+13AvLCkx

Deans assets are worth about 100-200m more than the debt. The deal is 425m PLUS all of the liabilities and assets which is also the 2.2b debt Deans owes. The govt. doesn’t want markets to be impacted so they don’t want to sell all assets. It’s up to the highest bidder what they want to do with the company and if they will condense/sell plants

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Post ID: @2rtt+13AvLCkx

DFA can get funding from banks, just like Dean did. However, DFA has a larger operation and a better credit rating.

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Post ID: @1gbu+13AvLCkx

I thought a lot of drivers might get shafted because grocery stores could just pull it from the actual warehouse and not from satellite District.

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Post ID: @1sct+13AvLCkx

Funny I work at a creamery they merged with back in January and no one, REPEAT NO ONE has gotten laid off they've only fired the people who caused trouble.

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Post ID: @1ciz+13AvLCkx

If DFA is going to take on Dean's debt they'll need to raise some cash. Since only about 4 or 5 plants make money they could easily turn around and sell the plants they don't want to the highest bidder.

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Post ID: @1ipj+13AvLCkx

When the previous post states that DFA will assume the liabilities, is that the $800 million plus Central States liability?

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Post ID: @ega+13AvLCkx

DFA also assumes the liabilities which will be negotiated with the various parties. How much did you assume they pay to cover the liabilities?

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Post ID: @enf+13AvLCkx

I honestly think they did this to boost interest to other bidders DFA doesn’t want all these nonprofitable plants

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Post ID: @zuo+13AvLCkx

DFA has many partners in operating milk plants and DSD routes. I work for one of those Joint Ventures and have for 35 years. Everyone will be on in the end. Just hold on and take deep breaths.

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Post ID: @pld+13AvLCkx

I have a feeling a lot of drivers are going to get the shafts because dfa doesn't do dsd they will also have the ability to shut the union plants down for the 90 days it takes to oust unions

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Post ID: @lws+13AvLCkx

I have a feeling that they don't buy the plant they'll just use. Transportation from a third party company to pick everything up from a different plant to deliver to the storage which would also allow them to start shutting down where Different yard's throughout the United States that they don't want to pay employees to work at.

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Post ID: @xqm+13AvLCkx

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