Pipeline Foods files for Chapter 11 bankruptcy | 2021-07-12
FRIDLEY, MINN. – Pipeline Foods, a U.S. supply chain solutions company focused exclusively on organic, non-GMO and regenerative food and feed, announced on July 9 that it has filed for Chapter 11 relief of the Bankruptcy Code with the United States Bankruptcy Court for the District of Delaware.
“The impact of the coronavirus pandemic (COVID-19) coupled with the company’s secured debt obligations have caused significant financial hardship for our business,” said Anthony Sepich, CEO of Pipeline Foods. “Accordingly, we believe that a bankruptcy filing and potential sale of the business, parts of the business and some of its assets is the best way forward to unlock value for the benefit of all creditors. . I would like to thank all of our employees, producers, customers and business partners for their dedication and continued support during these unprecedented times. “
Pipeline Foods said it would begin filing usual petitions with the bankruptcy court that would allow it to operate under a cash guarantee budget, allowing for the payment of employee salaries and benefits without interruption.
Pipeline Foods said it expects to seek permission to sell its grain inventory outside the ordinary course at market prices in a bid to facilitate the company’s use of cash collateral.
The first hearing in the company’s bankruptcy court case is set for July 14.
Founded in 2017 and based in Minneapolis, Pipeline Foods aims to put more profits back into the hands of farmers while creating reliability and transparency for food businesses and providing unique investment opportunities for financial partners. In recent years, the company has grown through acquisitions, including the 2019 acquisitions of the ancient grains and specialty products business of Organic Ventures and of the specialty and organic soybean and corn business of SunOpta. Inc. In 2018, Pipeline acquired 3.4 million bu grain elevator in Atlantic, Iowa, from ADM. At the time, Pipeline Foods said it planned to make capital investments in new equipment at the facility. In addition, plans included improvements to modernize the elevator to test, clean, grade, dry, store and ship organic grain.