Pilgrim's Pride completes reorganisation

by Editor fleischwirtschaft.com
Tuesday, December 29, 2009

Pilgrim's Pride Corporation yesterday announced that the company and six of its subsidiaries have emerged from Chapter 11 bankruptcy protection after a 13-month restructuring.

In connection with its emergence, the company has entered into a $1.75 billion exit credit facility with several banks. The exit credit facility is secured by substantially all of the company's assets. Under the terms of the company's plan of reorganization, all creditors of the company and its debtor subsidiaries holding allowed claims will be paid in full as soon as practicable. In the case of bondholders, payment will be made either through reinstatement of the bonds or in accordance with the holder's previous election of a cash-out option.

Under the terms of the confirmed plan, all of the shares of the company's common stock outstanding immediately prior to the effective date of the plan were cancelled and converted on a one-for-one basis into the right to receive new shares of the reorganized company. The reorganized company issued 64% of its common stock to JBS USA Holdings, Inc. in exchange for $800 million in cash. The remaining 36% of the common stock of the reorganized company was issued to stockholders existing immediately prior to the effective date. Proceeds from the sale of the common stock of reorganized Pilgrim's Pride to JBS are being used to fund cash distributions to unsecured creditors.
The reorganized company's common stock will begin trading tomorrow on the New York Stock Exchange under the symbol "PPC."
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