"We have worked very closely with our creditors to develop a plan of reorganization that should be accepted, approved and executed in the coming months," said James A. Mesterham, the chief restructuring officer of Farmland. "The filing of our plan is a milestone that is one of the final steps towards allowing Farmland to emerge as a strong competitor in the dairy industry."

The cornerstone of the plan is an agreement that was reached between GE Commercial Finance, the lessor of a majority of Farmland's manufacturing equipment at its New Jersey and Michigan production facilities, and the Unsecured Creditors Committee.

Farmland's President Martin Margherio believes that the company is well positioned for the future.

"We continue to be the leading supplier of high quality dairy products in the metro New York and New Jersey markets, and are strengthening our operations and refining our focus for the long-term success of the company."