At least 500 farmers, milk haulers, and others have received letters from bankruptcy lawyers representing the Dean Foods Estate in an effort to collect funds distributed during the company’s bankruptcy proceedings.
While it’s not uncommon for businesses undergoing a bankruptcy to try and take back funds, experts say most farmers should be able to avoid repayment.
American Farm Bureau Senior Counsel for Public Policy Travis Cushman tells Brownfield it’s reprehensible that the debtor would target hardworking dairy farm families to recover payments honestly earned for the supply of milk during a time when they are struggling through a multi-year downturn in milk prices and a difficult economic environment with the Covid-19 pandemic.
