FRIDLEY, MINN. — Pipeline Meals, a US-based mostly offer chain answers enterprise focused solely on natural, non-GMO and regenerative foods and feed, declared July 9 that it has filed for relief beneath Chapter 11 of the Individual bankruptcy Code in the United States Bankruptcy Court docket for the District of Delaware.
“The impression of the coronavirus (COVID-19) pandemic coupled with the company’s secured credit card debt obligations have induced substantial money distress on our organization,” claimed Anthony Sepich, main executive officer of Pipeline Foodstuff. “As a outcome, we feel that a bankruptcy filing and a prospective sale of the enterprise, portions of the organization, and specified of its belongings is the ideal route ahead to unlock value for the benefit of all collectors. I would like to thank all of our workforce, growers, buyers and business enterprise partners for their perseverance and continued aid by means of these unprecedented situations.”
Pipeline Meals stated it will get started submitting customary motions with the bankruptcy courtroom that will authorize it to work in a cash collateral spending plan, allowing for for the payment of employee wages and positive aspects with no interruption.
Pipeline Foodstuff reported it expects to search for approval to sell its grain inventory exterior of the everyday class at market place selling prices in an effort and hard work to aid the company’s use of income collateral.
The first hearing in the company’s personal bankruptcy court scenario is set for July 14.
Established in 2017 and headquartered in Minneapolis, Pipeline Meals established out to set additional profits back into the hands of farmers when developing dependability and transparency for meals companies and supplying unique expenditure alternatives for financial partners. In excess of the earlier many several years the corporation has expanded through acquisitions, like the 2019 acquisitions of the ancient grains and specialty solutions organization of Organic Ventures and the specialty and organic soy and corn enterprise of SunOpta Inc. In 2018, Pipeline acquired a 3.4-million-bu grain elevator in Atlantic, Iowa, from ADM. At the time, Pipeline Foodstuff mentioned it prepared to make funds investments in new machines at the facility. Furthermore, programs named for improvements to enhance the elevator to test, thoroughly clean, quality, dry, retail outlet and ship organic and natural grains.