Dean Foods Co. (fka DFODQ)

[Renee]

DFODQ BK PLAN effective. All shares cancelled.

https://otce.finra.org/otce/dailyList?viewType=Deletions

[barnyarddog]

06/02/2021 17:04:15
Bankruptcy Plan Effective / Shares Cancelled
06/03/2021 00:00:00
DFODQ
Dean Foods Company Common Stock

[lordgod]

Any new news here ?

[mstur29]

What does this mean for the stock now that the sale is final?

[eebbee]

Related news tonight:

https://www.wsj.com/articles/u-s-antitrust-officials-allow-dairy-cooperative-to-purchase-dean-foods-plants-11588373882

[zatan]

That explains! I was trying to figure out what made my account go up and couldn't find the news. It is possible that you are going to hit the jackpot with this (it went up to .03 without such news and that when I collected my heavy bag...oops) tomorrow (and potentially next week if there is any substance to the news...these tend to run multiday when they do.

Good luck to all of us!

[eebbee]

So my etrade news feed read, "Borden Dairy Floats Merger With Bankrupt Milk Processor Dean Foods"
I don't even know what that means, but got in on a whim, ha. So far so good. My fun play of the day.

https://www.wsj.com/articles/borden-dairy-floats-merger-with-bankrupt-milk-processor-dean-foods-11587670058














.

[UNDAUNTED]

Whatever happens it always means it's about to 'take off'...

[StihlsawsRule]

Todays 'trading' here looks very suspicious. Like coiling the spring super tight on small volume to set up a huge short covering. I understand the bankrupt Q/POS thing and all that, and very unlikely DFODQ remains a going concern.
But,,,,25% cram down on 1.5m shares? Ouch

[myround0]

Why not sell the entire company. Its clear the ability to run a huge facility is beyond their capabilities...Could have sold to Wal-Mart in 2018...

[Fordman65]

shareholders will get $0. The company has no intention of making a go of it. They have been very clear about this. They are done. It is over

[myround0]

Big question is will shareholders get some of the 530 mill or will this company try to make another go of it. I would hope they would make an announcement real soon, like in the next couple of days, or I will pull my investment. I need to know the way forward, keeping all the cards close to their chest is going to cost them.

[TuMaRu]

I too initially thought there was a slim chance of a good outcome here, given the strong balance sheet, milk being an essential staple and all that. But looking at how INEPT their management is, complete lack of foresight on how to strategically position themselves due to the demographic changes in consumption, I concluded that neither can anyone save this sorry excuse of a company nor do they deserve to be saved. Recall that Saputo passed on Deans last May, stating that it was a "volume" play not a value play.

Completely idiotic management, CEO after CEO just in it for the $$$ and then there was DFA, hell bent on destroying value. They were owed $173 M by Deans and so basically said, "hey dudes, we're now gonna take over the farm, chickens, goats, tractor and your grandma but you can't say a word cause you're too dumb, so just shut up and get out". So they did. In the end, no one wants to deal with legacy plants, underfunded pensions, union labor and what not. As was correctly predicted by analysts early last year, NOT A SINGLE DAIRY or other company expressed interest in acquiring all of Dean Foods so they have no choice but to sell assets to pay off their debts.

[shurtha2000]

too bad thought CV might save them

[TuMaRu]

Not company, just the assets sold to various parties. Stock will eventually head to zero once its all done.

[lab40]

Depends on if they picked up the stock.

[myround0]

Subject to approval, on Friday, company sold to various entities for 530 mill. What will share price be.

[Fordman65]

BS. Dean Foods is done. Co will cease to exist

[shurtha2000]

Milk #1 on the shopping list

[shurtha2000]

Milk absolutely essential

[TuMaRu]

You need to realize that DFODQ management is LEAST interested in a successful restructuring of the company. Forget about return to profitability, that's never going to happen with these idiots in charge. DFA has a complete stranglehold on them, plus they're aided in their effort by a totally useless judge who's happy to give it all away to the lenders.

In all his past cases, the judge ruled against equity stockholders making sure that Equity Committees were NOT appointed, and if ever allowed they could not plead nor prove their case for favorable outcome. Even US Trustee is asleep at the wheel so barring a miracle you will likely lose your investment. Thats the current scenario, very different from what it looked like in Jan.

[Here27]

Yes, Dean is more profitable than ever! We just need to see those financials and slow down this sale so higher bidders can come in!

[lab40]

Here's the chance for these guys to get some market share, the stores are empty, time to make a move!

[TuMaRu]

It appears you got your answer today. This is a totaly shady company being bought out by an even shadier outfit, all with the apprent collusion of the ch. 11 courts. Good luck if you're still in this.

Both these companies have been sued multiple times by many parties over the years, and have paid out 100s of millions to settle out of court.

[Here27]

SC777
Still have a chance for one more runup?

[TuMaRu]

Not sure it will rebound. Bonds are 11c on the dollar today, if they won't be made whole, how can equity do better? Bondholders tried to oppose DFA deal and are working on Ch. 11 plan to submit to court. If no better offer emerges and lenders/DOJ continue to oppose DFA in April, judge may cram down his own decision (which will probably be the worst decision) on all. Judge is infamous for being anti-stockholder in all his past cases.

DFA's $425 M bid hardly values the assets fairly. And its really puzzling why Rabobank would lend them $850 M when DF debts were already over $890 M (1.1 billion if AR facility is included). Its as crooked as it gets and only lawyers make money in such "deals".

[TuMaRu]

There was no press release... you need to go to the Epiq website for DFODQ and click on the relevant docket to read it.

[zatan]

I don't see that news anywhere so, if you have a link, share it. Having said that, it literally means NOTHING, an "adhoc" equity committee request was withdrawn, big deal. They already have an offer for the assets, there may be even more bidders, even the current offer for the assets would put the sp much higher than this. No change to court date, the only information that matters will be revealed after the 12th of March after the court date. I mean, you are literally having a conversation with your own posts on this board at this point

[TuMaRu]

Read docket #990 filed yesterday - judge has threatened sanctions on Ad Hoc group and their lawyer.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Under threat of sanction by the court, the Ad Hoc Group of Equity
Shareholders hereby WITHDRAWS its motion for appointment of an equity
committee (Docket Entry 896) and WAIVES all right to hearing thereon.
Dated: February 24, 2020

[Fordman65]

Could very well be. This has been killed by shorts though for a long time. Other than the equity committee being shot down, what other news has been released? None that I am aware of. Because of this, might have a chance to rebound a bit.

[TuMaRu]

Looks like its over for Deans. Stock has been bleeding red for 7 straight days with that virus just making it worse. Longs who purchased at 0.25 or higher are now stuck with this.

[TuMaRu]

David Jobes the judge in this case, has thrown out the equityholders request for an Ad Hoc equity committee to be formed. WOnder what happens now?? Not expecting a good outcome any longer unless some other bidder emerges. Thoughts?

I see stockholders making a mad scramble to the exits, as this will go to 0.0 once they emerge from bankruptcy and all assets have ben transferred over to DFA.

[TuMaRu]

Market drop today. Looks like DFODQ will also take a severe beating going by how its been trading the last few days. Damn noCV and the Chinese.

[Fordman65]

Assuming the sale to DFA goes through, what is left? Does Deans dissolve? Do they come out a much smaller company? If so, what are they selling?

[Vector93]

Hard to see this thing taking off when people are dumping it and running away.

Probably doesn’t help that there’s more than a billion in debt but only a buyout offer for $400M.

Shareholders don’t make money when the creditors don’t get paid.

[TuMaRu]

Si si, you give me 20 milllllion lirra.. si. Kapeeesh. Agreed, if one got in at 5-6-7 cents then this would be a great opportunity to make some fast cash.

[Longer Than Most]

Risk - reward. Most people buying blue chip stocks are not touching Q plays. If you invested since the start of 2020 in $DFODQ, you would have more than tripled your investment, and that’s during less than 2 months. Kapeesh?

[TuMaRu]

Let me challenge my own view - it would be hard if not impossible to find retail investors to buy 90-100 million shares of a bankrupt company, that too a milk processor. Even if the price is a quarter. Not when the broader market itself is doing great. People doubled their money in less than a year with Tesla, Apple and many others. Why would anyone ever buy DFODQ?

[SC777]

Based on the way it has been trading, I don't believe the run is over. I think it's setting up for a third leg, but that's just my opinion.

[Longer Than Most]

Wrong

[Fordman65]

That about sums it up. Retail bag holders. Imagine that?

I don't believe earning report will do much for the PPS, but if it flies for a bit, I'm out.

[TuMaRu]

The market makers (if any MMs support OTC stocks that is) in DFODQ seem to be dumping the inventory they had absorbed after Ch. 11 was filed. 170 million shares were dumped at or below 10 cents in the 8 days since filing BK.

Volume since 3rd Jan 2020 has reached 90 Mil shares (almost) with most trades in the 20 and 30 cent range to retail investors. Lot of churn, no real price increase, MM still made a profit of 15 c/share ($25 mil + fees for holding the entire lot of 170 mil for 2 months) and now retail is left holding the bag if this "run" is complete.

Anyone wants to challenge this view?

[SC777]

My thought is that the attempted breakout on Tuesday was not expected and they didn't want it to run yet.

Usually when something is tightly managed like this they have a bigger run in mind, but I guess we'll find out.

[Longer Than Most]

She‘ll rip one of these days. And next time I bet the run surpasses the recent high of .30

[SC777]

There's DEFINITELY interest here. That's why it is being held down IMO.

[SC777]

Looks like a trading program to me programmed for trades to go through at the bid all day long today

[trendzone]

And if any enterest was to develop over night, every A hole selling manipulator will be left holding their little pudds in their hands.

[Fordman65]

I believe that to be true. That said, if there was strong buying pressure none of this would happen. Wall Street has no interest in this.

[TuMaRu]

People are selling as few as 100 or even 40-50 shares and bringing the price down. DF stock is not in good hands obviously, strongly suggesting extreme manipulation of daily volume and price.

[trendzone]

Probably past hedge funds and other large investor's and brokers who got smoked badly in there investment here,and are out for revenge,and don't want to see them trading at what might be the true value that should be much higher.