Pilgrim's Pride: Bankruptcy court confirms plan of reorganization

By Lisa Kerner

Charlotte, N.C., Dec. 10 - Pilgrim's Pride Corp. announced that the U.S. Bankruptcy Court for the Northern District of Texas confirmed its amended joint plan of reorganization at a hearing on Dec. 8.

Included in the joint plan are six of the company's subsidiaries that are debtors and debtors in possession in the Chapter 11 cases pending before the court, a Pilgrim's Pride news release said.

Pilgrim's Pride said that it expects to emerge from bankruptcy before the end of December.

Under the terms of the plan of reorganization, Pilgrim's Pride entered into an agreement to sell 64% of the new common stock of the reorganized Pilgrim's Pride to JBS USA Holdings, Inc., a subsidiary of Sao Paulo, Brazil-based meat producer JBS SA, for $800 million in cash.

According to Pilgrim's Pride, completion of the transaction is subject to the closing of an exit facility for senior secured financing in total principal amount of up to $1.75 billion as well as certain regulatory approvals and other customary closing conditions.

As previously reported, last week the company amended its debtor-in-possession credit facility, extending the maturity date to Jan. 31, 2010 from Dec. 1 and reducing the size to $250 million from $350 million.

Pilgrim's Pride is a Pittsburg, Texas, poultry processor. The company filed for bankruptcy on Dec. 1, 2008, and its Chapter 11 case number is 08-45664.

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