Bankruptcy court OKs
plan of reorganization
for Pilgrimís Pride Corp
Dec 11, 2009 9:45 AM
Pilgrimís Pride Corporation announced that the US Bankruptcy Court for the Northern District of Texas has approved the amended joint plan of reorganization of the Pittsburg TX-based chicken processor and six of its subsidiaries that are debtors and debtors in possession in the Chapter 11 cases pending before the court.
After a December 8 court hearing in Fort Worth TX, Judge D Michael Lynn entered an order confirming the amended plan of reorganization, paving the way for the debtors to exit bankruptcy later in December. Pilgrimís Pride said it expects to emerge from bankruptcy before the end of December.
ďThis is a proud day for everyone at Pilgrimís Pride who has worked so hard over the past year to restructure our business,Ē said Don Jackson, president and chief executive officer, after the court hearing. ďThe past 12 months have been filled with tremendous challenges and unprecedented opportunities. There have been a lot of tough, painful decisions made about the future of this company, yet our employees have joined together to create a new market-driven organization that is clearly focused on serving our customers.Ē
In September, the debtors filed a joint plan of reorganization and related disclosure statement with the court. Under terms of the joint plan of reorganization, Pilgrimís Pride has entered into an agreement to sell 64% of the new common stock of the reorganized Pilgrimís Pride to JBS USA for $800 million in cash. Completion of the transaction is subject to closing of an exit facility for senior secured financing in an aggregate principal amount of up to $1.75 billion, certain regulatory approvals, and other customary closing conditions.
Information about Pilgrimís Prideís restructuring is available at www.pilgrimspride.com or by calling (888) 830-4659.
Pilgrimís Pride employs approximately 41,000 people and operates chicken processing plants and prepared-foods facilities in 12 US states, Puerto Rico, and Mexico.
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