Bankruptcy court okays sale of Pilgrim's Pride plant
May 21, 2009
by FoodBusinessNews.net Staff
FARMERVILLE, LA. — The U.S. Bankruptcy Court for the Northern District of Texas has approved the sale of the Pilgrim’s Pride chicken processing plant in Farmerville to Livingston, Calif.-based Foster Farms.
Although the plant closed after Pilgrim’s Pride filed for financial reorganization, the court’s May 19 approval is a major step in Louisiana’s plan to save the facility. Foster Farms has agreed to buy the plant for $80 million. Approximately 1,300 workers lost their jobs earlier this month after the plant closed
According to legislation now under consideration, the state of Louisiana would contribute $50 million, plus another $10 million toward equipment upgrades.
Foster Farms plans to open the plant by mid-July.