Released by Ray Atkinson with Pilgrim's Pride:
PITTSBURG, TX - Pilgrim's Pride Corporation (Pink Sheets: PGPDQ - News) has 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.