Pilgrimís Pride files
for Chapter 11 relief
Dec 2, 2008 9:10 AM
Pilgrimís Pride Corporation, together with certain of its wholly owned subsidiaries, has filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas. This action is designed to address certain short-term operational and liquidity challenges, the firm said.
The Pittsburg TX-based poultry companyís operations are expected to continue as normal throughout the bankruptcy process while it develops a reorganization plan. Operations in Mexico and certain operations in the United States were not included in the filing and will continue to operate outside of the Chapter 11 process.
In conjunction with the filing, the company is seeking approval to enter into a $450 million debtor-in-possession financing facility arranged by Bank of Montreal as lead agent. If approved by the court, the DIP financing will provide an immediate source of funds to the company, enabling it to satisfy customary obligations associated with the daily operation of its business. These obligations include timely payment of employee wages.
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