Court approves 'first day' motions for Pilgrim's Pride
December 03, 2008
by FoodBusinessNews.net Staff
PITTSBURG, TEXAS — The U.S. Bankruptcy Court for the Northern District of Texas has approved "first day" motions to Pilgrim’s Pride Corp., providing interim approval to access $365 million of its $450 million debtor-in-possession (DIP) financing facility arranged by the Bank of Montreal.
"The court’s approval of our DIP financing and first day motions is a positive first step toward a successful restructuring," said 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."
The final DIP hearing is scheduled for Dec. 17.
Pilgrim’s Pride filed Chapter 11 bankruptcy petitions on Dec. 1, and The New York Stock Exchanged also has suspended Pilgrim’s Pride common stock.