September 23, 1986 |
Ailing Knudsen emerged Monday from three days of intense negotiations with Citicorp, its chief lender, armed with new funds that will allow the West's largest dairy to continue limited operations--at least for two more days. The company also removed all but one member of its board of trustees. Meanwhile, the company is expected to step up its efforts to sell the business piece by piece. Company officials said last week that Knudsen has received $200 million in offers for parts of the company.
September 20, 1986 |
Representatives of financially crippled Knudsen and its chief creditor Citicorp were locked in daylong negotiations Friday, trying to work out details of what may be the final days of the West's largest dairy. Knudsen on Friday told several customers, including the Los Angeles Unified School District and the Stater Bros. market chain, that it will stop delivering milk and other products by the weekend or early next week.
June 28, 1985 |
Knudsen Foods of Los Angeles on Thursday completed its acquisition of Foremost Dairies for $50 million in cash and notes, creating one of the largest dairy companies in the West. The merger will also result in the layoff of an estimated 400 of Foremost's 3,000 employees.
October 14, 1988 |
A firm that owns the bankrupt Knudsen-Foremost dairy filed a $150-million lawsuit Thursday against Citicorp bank, which refused to advance the ailing dairy money before it went bankrupt. The suit was filed in Los Angeles Superior Court by Winn Enterprises, which is in bankruptcy. It alleges that Citicorp North America loaned Winn, which owns K. F. Dairies (formerly known as Knudsen), $168 million for the leveraged buyout of Foremost in 1986, knowing the companies would go bankrupt.
August 11, 1986
The unsecured creditors filed an involuntary Chapter 11 bankruptcy petition against Foremost Dairies, a unit of financially troubled Winn Enterprises, which also owns Knudsen Foods. Knudsen is also facing an involuntary Chapter 11 bankruptcy action. In the petition, filed in U.S. Bankruptcy Court in Los Angeles, creditors James River Corp., Jackson Ice Cream and Star Blends said they are owed a total of $940,000.