Pilgrim's Pride receives court approval

by Editor fleischwirtschaft.com
Friday, December 05, 2008

Pilgrim's Pride Corporation announced the approval of "first day" motions by the U.S. Bankruptcy Court for the Northern District of Texas.

The Company received interim approval to access $365 million of its $450 million debtor-in-possession (DIP) financing facility arranged by Bank of Montreal. The DIP financing, combined with cash generated from ongoing operations, will allow the Company to satisfy its customary business obligations, including the timely payment of employee wages and payments to vendors.

The final DIP hearing is scheduled for December 17, 2008.

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.