FORT WAYNE, Ind. (AP) — The operator of a 1,200-cow dairy in northeastern Indiana has filed for Chapter 11 bankruptcy reorganization after acquiring at least $6 million in debt.
The Journal Gazette reports that New Holland Dairy near Bluffton must devise a recovery plan by the end of January to satisfy Bank of America. The dairy is continuing to operate in the meantime.
Attorney Daniel Skekloff of Fort Wayne says the dairy was forced into bankruptcy by a drop in milk and real estate prices in 2009. He says high feed costs and other issues two years ago forced dairy farms across the country out of business and prompted the U.S. Department of Agriculture to provide emergency aid.
New Holland has about $6 million in annual milk sales and 15 employees.
Copyright 2011 The Associated Press.