Pilgrim's Pride Files Chapter 11; Receives Court Approval
Pilgrim's Pride Corporation, together with certain of its wholly owned subsidiaries, announces the approval of "first day" motions by the United States Bankruptcy Court for the Northern District of Texas. The company received interim approval to access $365 million of its $450 million debtor-in-possession (DIP) financing facility arranged by Bank of Montreal as lead agent. The DIP financing, combined with cash generated from ongoing operations, will allow the company to satisfy its customary business obligations, including the timely payment of employee wages and payments to vendors. The final DIP hearing is scheduled for Dec. 17, 2008.
"The Court's approval of our DIP financing and first day motions is a positive first step toward a successful restructuring," says Clint Rivers, president and chief executive officer. "Throughout this process, we will continue to operate our business without interruption, including paying employee wages and purchasing the goods and services necessary to serve our customers. We have been working hard to address the operational and financial challenges we currently face, and this restructuring will help us not only meet these challenges, but also enhance the efficiency of our operations, strengthen our balance sheet and position Pilgrim's Pride to compete more effectively in the future."
As previously announced, the company filed voluntary Chapter 11 petitions on Dec. 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.
"The Court's approval of our DIP financing and first day motions is a positive first step toward a successful restructuring," says Clint Rivers, president and chief executive officer. "Throughout this process, we will continue to operate our business without interruption, including paying employee wages and purchasing the goods and services necessary to serve our customers. We have been working hard to address the operational and financial challenges we currently face, and this restructuring will help us not only meet these challenges, but also enhance the efficiency of our operations, strengthen our balance sheet and position Pilgrim's Pride to compete more effectively in the future."
As previously announced, the company filed voluntary Chapter 11 petitions on Dec. 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.