Pipeline Foods, LLC on Friday said that it and certain subsidiaries and affiliates have filed voluntary petitions for chapter 11 relief in the U.S. Bankruptcy Court for the District of Delaware, according to a press release. The company will be filing customary motions with the bankruptcy court that will authorize, upon court approval, the company's ability to operate within a cash collateral budget, including, among other things, the payment of employee wages and benefits without interruption and the use of cash collateral. The company will continue its pre-filing efforts to evaluate any and all strategic alternatives, including a sale of all or substantially all of the assets of its businesses in an effort to maximize value and recovery for all creditors. In parallel with this process, the company expects to request authority to sell its grain inventory outside of the ordinary course at market prices in an effort to facilitate the company's use of cash collateral. The first hearing has been scheduled for Wednesday.
