Foster Dairy Farms may acquire Humboldt assets
July 21, 2009
by Keith Nunes
MODESTO, CALIF. — Foster Dairy Farms has agreed to acquire Humboldt Creamery’s Fernbridge and Stockton, Calif., facilities. Humboldt Creamery is operating under the supervision of the U.S. Bankruptcy Court and the sale of its major assets is a part of its plan to complete the proceedings. An auction of the company’s assets is tentatively scheduled for Aug. 11.
The farmer-owned dairy cooperative filed for Chapter 11 bankruptcy protection in April, two months after former chief executive officer Rich Ghilarducci admitted that the company’s finances were worse than what had been previously reported.
"After many weeks of due diligence and negotiations, I’m pleased to announce that we have reached an important milestone by entering into an asset purchase agreement with Foster Dairy Farms," said Len Mayer, acting c.e.o. of Humboldt Creamery.
As part of the bankruptcy process, Humboldt Creamery will file a motion with the bankruptcy court to approve the sale to Foster Dairy Farms or the highest bidder at the auction. The company expects the sale process to be complete by Aug. 25.
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