Knudsen’s Parent Files for Bankruptcy Reorganization
LOS ANGELES (AP) _ Winn Enterprises Inc., parent of the West’s largest dairy operation, Knudsen Foods Inc., has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
Winn’s major operations, the Knudsen and Foremost dairy units of Knudsen Foods, already are operating under bankruptcy court protection.
Winn’s only other operation is MountainWest Savings & Loan Association of Salt Lake City, Utah. Tuesday’s Chapter 11 filing did not affect the financial condition or operation of MountainWest, a federally-insured institution with $340 million in assets, Winn said.
Under Utah and federal law, the state-chartered thrift is prohibited from permitting Winn to use MountainWest’s assets, cash or income.
Meanwhile, Winn said negotiations were continuing to find buyers for the remainder of its Knudsen Foods operations.
Knudsen previously had agreed to sell the bulk of its California and Nevada operations to food-industry giant Kraft Inc. of Glenview, Ill., and Southern California grocer Hughes Markets for $68 million. It also has agreed to sell two California plants to Denver-based Leprino Foods Inc., a major cheese distributor, for $9.5 million.
Buyers still are being sought for Knudsen’s central division, which includes Texas, Louisiana, Arkansas and Missouri, as well as its Arizona and Hawaii operations.