Pipeline Foods Files For Chapter 11
The impacts of the global pandemic, along with the weight of secured debt obligations, has led to conditions whereby Pipeline Foods and certain subsidiaries and affiliates have filed for voluntary petitions of relief under Chapter 11.
Pipeline is the first dedicated supply chain in the U.S. focused solely on non-GMO, organic, and regenerative food and feed grains and ingredients. As the Chapter 11 process unfolds, the company will continue its pre-filing efforts to examine any and all strategic alternatives, including a sale of all or the bulk of its assets in order to maximize value and the recovery for its creditors. It also will request authority to sell its grain inventory outside of the ordinary course at market price to facilitate the company’s use of cash collateral.
The first hearing was scheduled to take place on July 14, 2021, and Pipeline will be filing customary motions for authorization that will enable the company to operate within a cash collateral budget, including the paying of wages and benefits without disruption and the use of cash collateral.