PITTSBURG, Texas — Pilgrim’s Pride Corporation today announced that the United States Bankruptcy Court for the
Northern District of Texas has approved the amended joint plan of reorganization
of the Company and six of its subsidiaries that are debtors and debtors in
possession (the Debtors) in the Chapter 11 cases pending before the court.
Following a court hearing held December 8 in Ft. Worth, Judge D. Michael Lynn
today entered an order confirming the amended plan of reorganization, paving the
way for the Debtors to exit bankruptcy later this month. Pilgrim’s Pride said
that it expects to emerge from bankruptcy before the end of December.
“This is a proud day for everyone at Pilgrim’s Pride who has worked so hard over
the past year to restructure our business,” said Don Jackson, president and
chief executive officer, after the court hearing. “The 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.”
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, Pilgrim’s Pride has entered into an agreement to sell 64% of the
new common stock of the reorganized Pilgrim’s Pride to JBS U.S.A. for $800
million in cash. The completion of the transaction is subject to the 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 Pilgrim’s Pride’s restructuring is available at Pilgrim’s
Pride’s website www.pilgrimspride.com or via Pilgrim’s Pride’s restructuring
information line at (888) 830-4659.
As previously announced, the Debtors filed voluntary Chapter 11 petitions on
December 1, 2008. The Chapter 11 cases are being jointly administered under case
number 08-45664. The Company’s operations in Mexico and certain operations in
the United States were not included in the filing and continue to operate as
usual outside of the Chapter 11 process.
About Pilgrim’s Pride
Pilgrim’s Pride Corporation employs approximately 41,000 people and operates
chicken processing plants and prepared-foods facilities in 12 states, Puerto
Rico and Mexico. The Company’s primary distribution is through retailers and
foodservice distributors. For more information, please visit
http://www.pilgrimspride.com/.
Photo Caption: A bust of Lonnie “Bo” Pilgrim, wearing his trademark pilgrim hat,
at the Pittsburg, Texas, headquarters of Pilgrim’s Pride.
Photo Credit: Roadside America
Source:
Pilgrim’s Pride Corporation