Farmland Dairies unit plans to sell its Milk Products of Alabama operation for about $20 million.
Farmland Dairies, based in Wallington, N.J., said it filed with the bankruptcy court overseeing the Parmalat case for permission to make the sale to National Dairy Holdings. Parmalat is the Italian dairy conglomerate that collapsed under a massive accounting fraud late last year.
"The sale of the Milk Products of Alabama subsidiary is a key step in the restructuring of Farmland," said Farmland restructuring chief James Mesterharm. "We've made some significant progress in our restructuring efforts, and this transaction, when complete, will further increase our focus on our core business and ensure that we achieve maximum value and asset recovery for Milk Products' creditors."
Farmland Dairies also named Martin Margherio president and chief operating officer, subject to the approval of the bankruptcy court.
"Farmland is a great organization with a solid reputation, and I'm looking forward to leading the company forward and to building on the success of such solid and recognizable consumer brands as Farmland's Skim Plus," Margherio said. "I am eager to meet with our customers, employees and vendors, and to see where we can make a difference for them and our stakeholders."