Pilgrim's Pride Receives Court Approval to Solicit Stockholder Acceptance of Amended Joint Plan of Reorganization
Pilgrim's Pride said that it anticipates the plan of reorganization to be confirmed by the Bankruptcy Court in time for the Debtors to emerge from bankruptcy before the end of December.
22 Oct 2009 --- Pilgrim's Pride Corporation has received approval from the U.S. Bankruptcy Court for the Northern District of Texas to begin soliciting stockholder acceptance of the amended joint plan of reorganization of the company and six of its subsidiaries that are debtors and debtors in possession (the Debtors) in the chapter 11 cases pending before the court. The company's creditors will not be voting on the plan of reorganization as they are not considered to be an impaired class and all will be fully repaid upon the company's emergence from bankruptcy.
All stockholders of record on October 22, 2009, are entitled to vote to accept the plan of reorganization. Copies of the plan of reorganization and the amended disclosure statement will be mailed shortly. The deadline for ballots to be received by the voting agent is December 1, 2009. A court hearing to confirm the plan of reorganization is scheduled to be held December 8, 2009.
Pilgrim's Pride said that it anticipates the plan of reorganization to be confirmed by the Bankruptcy Court in time for the Debtors to emerge from bankruptcy before the end of December.
Last month, the Debtors filed a joint plan of reorganization and related disclosure statement with the court. Under terms of the joint plan of reorganization, Pilgrim's Pride has entered into an agreement to sell 64% of the new common stock of the reorganized Pilgrim's Pride to JBS U.S.A. for $800 million in cash.
As previously announced, the Debtors filed voluntary Chapter 11 petitions on December 1, 2008. The Chapter 11 cases are being jointly administered under case number 08-45664. The Company's operations in Mexico and certain operations in the United States were not included in the filing and continue to operate as usual outside of the Chapter 11 process.
