December 11, 2009

US Bankruptcy Court confirms Pilgrim's plan of reorganisation

Pilgrim's Pride Corporation announced that the US Bankruptcy Court have approved the amended joint plan of reorganisation of the company and six of its subsidiaries that are debtors and debtors in possession.

Following a court hearing held on December 8 in Ft. Worth, Judge D. Michael Lynn entered an order confirming the amended plan of reorganisation, 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.

"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 organisation that is clearly focused on serving our customers." said Don Jackson, president and chief executive officer, Pilgrim's Pride.

In September, the debtors filed a joint plan of reorganisation and related disclosure statement with the court. Under terms of the joint plan, Pilgrim's Pride has entered into an agreement to sell 64% of the new common stock of the reorganized Pilgrim's Pride to JBS US for US$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 US$1.75 billion, certain regulatory approvals and other customary closing conditions.

Pilgrim's Pride Corporation employs approximately 41,000 peopleand operates chicken processing plants and prepared-foods facilities in 12 states, such as Puerto Rico and Mexico.