Bankrupt Dean Foods (DFODQ) and Bordon Dairy have proposed a merger that could allow the two dairy companies to join forces. Bondholders for the companies floated the merger idea to the bankruptcy court in Houston, offering another option if the Dairy Farmers of America purchase of Dean Foods doesn’t move forward.

In the court filing, the bondholders said the merger would provide a “viable ‘Plan B’ transaction that would maximize the value of both estates.” The $433 million deal between Dairy Farmers of America and Dean Foods has been met with opposition from farmers and stakeholders as well as brought up antitrust concerns, Food Dive reported.

Dean Foods and Borden Dairy filed for bankruptcy in November and January, respectively. The sale of most of Dean Foods assets to Dairy Farmers of America was approved by the court, but the dairy company then dropped the organization as the stalking horse bidder after resistance from creditors and the bankruptcy court judge, the news outlet said.

Dean Foods is the largest milk producer in the U.S., with 57 manufacturing facilities. It is also Dairy Farmers of America’s largest customer. If the merger were to move forward, Dean Foods would become a wholly-owned subsidiary of Borden, with the deal financed by more than $1 billion in debt and equity financing, Food Dive said.

Shares of Dean Foods stock were down 15.29% as of 2:52 p.m. EDT on Monday.

Drinking milk first thing in the morning can lower blood sugar levels in Type 2 diabetes patients
Drinking milk first thing in the morning can lower blood sugar levels in Type 2 diabetes patients Pixabay
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