Pilgrim’s gets six more months to file reorganization plan

| 28/03/2009 | Reply

Pilgrim’s Pride
Corp. has been granted an additional six months to submit its plan of
reorganization for emerging from bankruptcy protection, according to
court documents filed on Thursday.

The U.S. Bankruptcy Court for the Northern District of Texas
granted the company’s request for an extension of time to file its
plan.

Pilgrim’s, which is reorganizing under Chapter 11 protection, now
has until Sept. 30 to submit the plan. Its previous deadline was March
30.

The Pittsburg, Texas-based company last week said it agreed to sell
its chicken complex in Farmerville, La., for $80 million to Foster
Farms. (See Pilgrim’s Pride approves sale of La. plant to Foster Farms on Meatingplace.com, March 23, 2009.) That sale is subject to approval by the U.S. Bankruptcy Court.

The company last month said it would close three plants, including the Farmerville site, and lay off 3,000 workers to cut costs.

Pilgrim’s Pride filed for Chapter 11 protection in December 2008
after struggling with high feed costs, low prices for meat and a heavy
debt load.

Category: Meat & Poultry

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